The Consumer Prices Index reached 2.3 percent from a three-year low of 1.7 percent in the 12 months to September, the Office for National Statistics said in a statement

Britain's manufacturers unexpectedly reduced their prices in December by the most since April 2020, welcome news for the Bank of England which is weighing up how much higher it needs to take interest rates to fight soaring inflation.

British annual inflation surged to a fresh 40-year high in June on rising motor fuel and food prices, adding to a cost-of-living crisis.