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Soaring air fares push up inflation

Wednesday, 18 January 20173 min read

Rising air fares last helped push UK inflation to its highest level for two and a half years in December.

According to the Office for National Statistics, fares were up 49% last month compared with November.

It said the higher cost of travel was one of the main factors that contributed to a 1.6% rise in Consumer Prices Index inflation, up from 1.2% in November.

The other main factor was rising food prices, while petrol prices fell less than in December 2015.

ONS head of inflation Mike Prestwood told the BBC: "This is the highest CPI has been for over two years, though the annual rate remains below the Bank of England’s target and low by historical standards."