UK consumer prices jumped higher than anticipated in December, though services inflation—a key metric the Bank of England keeps a close eye on—matched analyst forecasts exactly. The inflation figures reveal a mixed picture: headline CPI surprised to the upside, but the more sticky services component held steady at expected levels. This matters because the BoE's policy path heavily depends on how persistent these price pressures remain. Markets are now parsing whether this combo signals room for rate cuts or warrants a more cautious stance from the central bank in early 2025.