Inflation probably picked up in late 2024, fueled by robust household spending amid a strong economy. A key gauge of inflation — the consumer price index — is expected to show Wednesday morning that prices rose by 2.9 percent in December from a year earlier, according to economists’ forecasts of data released by the Bureau of Labor Statistics.

According to the Office for National Statistics (ONS), which determines the inflation rate, prices increased 2.5 per cent in the year ending in December, down from 2.6 per cent in the previous month.

U.K. inflation fell to 2.5% in December, according to data released by the Office for National Statistics on Wednesday.

The FTSE 100 ( ^FTSE) and European stocks were higher on Wednesday as traders digested news that UK inflation unexpectedly fell to 2.5% in December. This was down from 2.6% in November, according to the Office for National Statistics. Economists had expected inflation to stay steady at 2.6%.

Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month. The Office for National Statistics said Wednesday that inflation,

British inflation unexpectedly slowed to an annual rate of 2.5% in December from 2.6% in November, official figures showed on Wednesday.

UK inflation fell last month but remains above the Bank of England's target. Prices rose 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said. The latest figures come after pressure has increased on the public finances in recent days due to government borrowing costs hitting their highest level for several years.