Inflation rate sees increase

Inflation picked up pace in December after hard-hit clothing retailers held off from more steep discounts and transport costs edged up, according to official figures.

The Office for National Statistics (ONS) said Consumer Prices Index inflation rose to a slightly higher-than-expected 0.6% – up from 0.3% in November.

It said clothing prices rose marginally - up 0.1% - in contrast to the usual falls seen due to traditional Boxing Day sales, though prices still dropped on an annual basis.

Transport prices also rose as some travel restrictions eased and demand for computer games, consoles and children's toys pushed up inflation further, with annual recreation and culture inflation hitting its highest level since August.