Jan 17, 5:22 AM EST

British authorities say inflation has soared to its highest level in 2 years as the fall in the pound began to hit consumers at the grocery store

AP Photo
AP Photo/Kirsty Wigglesworth

Photo Gallery
Animal census at the London Zoo
Latest News from Britain
WikiLeaks says President Barack Obama may have saved Chelsea Manning's life by granting clemency to the ex-Army intelligence analyst, though the site says little about founder Julian Assange's promise to agree to extradition to the U.S. if that happened

Former U.K. Foreign Secretary Jack Straw faces a lawsuit brought by an ex-Libyan dissident who alleges he and his wife were abducted and sent to Tripoli, with British complicity, to be interrogated by the regime of late dictator Moammar Gadhafi

Engine maker Rolls Royce has agreed to pay $808 million in a deferred prosecution agreement to settle bribery and corruption claims A UK High Court judge on Tuesday will examine the deal involving authorities in Britain, the United States and Brazil

A lawyer says an official British report had criticized security at beach hotels in the Tunisian resort of Sousse, months before an extremist killed 38 in a gun attack there in 2015

What's next in Britain's divorce from the EU

So long, single market: Highlights of UK prime minister's Brexit speech

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
The administration of Puerto Rico's new governor warns that the government of the U.S. territory could shut down if dramatic measures to offset its financial crisis aren't taken soon

The United Nations is forecasting a modest economic recovery in 2017-18 but warns the projection is an indication of economic stabilization rather than a signal of robust revival

Investment analysts were just a bit more optimistic about the German economy in January despite the prospect of a turbulent year in politics

British authorities say inflation has soared to its highest level in 2 years as the fall in the pound began to hit consumers at the grocery store

Despite an improving economy, the European Central Bank is expected this week to explain why it intends to stick with its stimulus plan _ to pump newly printed money into the economy at least until the end of the year

The International Monetary Fund on Monday raised its forecast for the U.S. economy over the next two years, saying President-elect Donald Trump's policies should boost economic growth, particularly in 2018

Higher pay, rising consumer confidence boosted US retail sales 0.6 percent in December

South Korea's central bank has cut its economic growth forecast as a massive influence-peddling scandal hits private spending

Mexico's president slogs on in his struggle to calm anger over the big jump in gasoline prices this month amid a historically weak currency and continued threats by Donald Trump to steer manufacturers back to the United States

Turkish President Recep Tayyip Erdogan says Turkey's economy is under a "terror" attack similar to the wave of violent attacks that have targeted the country

Interactives
Greece's Debt Threatens to Spread
State budget
gaps map
Auto industry problems trickle down, punish Tennessee county
Women give old Derby hats a makeover in tough economy
S.C. town deals with highest unemployment in South
How mortgages were bundled and sold as securities
Tracking the $700 billion financial bailout
Tracking the year's job losses
State-by-state foreclosures since 2007
Credit crisis explained
Presidents and their economic legacies
Lexicon of the financial crisis
Americans' addiction to debt

LONDON (AP) -- The rate of inflation in Britain has soared to its highest level in 2 years as the fall in the pound begins to hit consumers at the grocery store.

The Office for National Statistics said Tuesday that the annual inflation rate in consumer prices hit 1.6 percent in December, from 1.2 percent in November, largely due to rising air fares and food prices.

That puts inflation at the highest level since July 2014, though it remains below the Bank of England's target of 2 percent.

Britain's supermarkets have long been engaged in a bitter price war that has kept costs to the consumer down. But pressure has been increasing on retailers as the pound's value dropped by a fifth since the June 23 referendum to leave the European Union.

© 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.