UK inflation rose again last month, according to the latest data. The UK Consumer Prices Index annual inflation rate rose to 3.7% in December, up from 3.3% in November. Retail Prices Index inflation - which includes mortgage interest payments - rose to 4.8% from 4.7%. Media reports have suggested the surge will force the Bank of England to raise interest rates earlier than planned to counter the increase, perhaps as early as this summer. However many economists, including Deloitte’s Roger Bootle, have warned that an increase in inflation rates could threaten the UK’s fragile recovery, especially given the public sector job cuts expected this year.