UK inflation rate climbs amid Brexit concerns

Prime Minister Theresa May is expected to deliver Brexit speech on Tuesday

By Gurhan Kartal

LONDON (AA) - The inflation rate in the U.K. has jumped to 1.6 percent in December 2016, the highest since July 2014, the national statistics office said Tuesday.

The Consumer Price Index (CPI) showed a 0.4 percentage point increase in inflation from 1.2 percent in November due to rising food and oil prices.

Economists had estimated that inflation in December would be around 1.4 percent.

The announcement comes as Prime Minister Theresa May is expected to deliver a speech detailing the country's Brexit strategy on Tuesday.

On Monday, the British pound slumped against the U.S. dollar, trading at $1.17, the lowest rate since 1986, according to exchange firm Travelex.

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