The Office of National Statistics upset the party a little, announcing a small rise in inflation for the year to December from 3.9% in November to 4%, when the general expectation was for a small decrease of the same amount.

This caused jitters in the UK stockmarket provoking a sell off of more than 1.25% on the realisation that the path to the Bank of England inflation target rate of 2%, isn't going to be that smooth.

Higher taxes imposed on tobacco and the increased cost of alcohol caused the rise, quite small but the reversal in direction has created a nervousness in markets that wasn't there before, will probably delay the expected interest rate cuts until the downward path is more certain.