UK inflation unexpectedly rose to 4% year-on-year in December, above analyst estimates of a decline to 3.8%. Higher prices for alcohol and tobacco led the increase, while food prices fell slightly. Core inflation, excluding volatile items, held steady at 5.1% versus estimates of a drop to 4.9%. While inflation may rise again in January, it's expected to fall over the course of the year as energy bills drop. Slower wage growth and economic stagnation should also help curb inflation pressures.