UK inflation falls to 2.5% in December

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UK inflation fell slightly last month as hotel prices dipped and tobacco costs eased.

Prices rose 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said.

Despite the drop, the rate of price rises remains above the Bank of England's target.

The latest figures come after pressure has increased on public finances in recent days due to government borrowing costs hitting their highest level for several years.

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