Inflation ticked up last month for the first time in nearly a year, official figures show, in a blow to hopes that the Bank of England will begin cutting interest rates in the coming months.

The consumer prices index (CPI) rose to 4pc in December, according to the Office for National Statistics.

The rate of inflation increased from 3.9pc in November and was higher than the 3.8pc that had been predicted by economists. It was the first time inflation has risen since February last year.

The jump means the Bank of England is less likely to begin cutting interest rates to boost the economy, which is at risk of slumping into a recession.

Before the latest data was released, money markets were predicting that policymakers would begin lowering borrowing costs by May at the latest.

Interest rates were increased to 16-year highs of 5.25pc in an effort to reduce inflation from 41-year highs of 11.1pc in October 2022 back to the Bank of England’s 2pc target.

Read the latest updates below.