HOUSEHOLD budgets are still taking a battering, trade union leaders warned today after inflation unexpectedly rose for the first time in a year.

Figures from the Office for National Statistics (ONS) showed consumer prices index inflation rate rose to 4 per cent in December, up from 3.9 per cent in November, marking the first increase since February last year.

The shock rise was largely driven by last November’s tax hike on tobacco, higher alcohol prices and air fares.