Lower food prices help offset higher energy costs
U.K.'s central bank kept its main interest rate at a near 16-year high of 5.25% on Thursday
Inflation was 4% in December, up from 3.9% the month before, the first increase in 10 months
Drop to two-year low of 3.9% in November was bigger than anticipated in financial markets
Monetary policy to remain "restrictive for an extended period of time," the Bank of England governor said
Quarterly outcome was nevertheless slightly ahead of analysts' expectations for a modest decline in output
The central bank warned that borrowing costs will likely stay elevated for some time
Nevertheless, Bank of England not expected to raise interest rates at next policy meeting
The U.K. central bank kept its interest rate unchanged at a 15-year high of 5.25%
Consumer prices index moderated to 6.7% in the year August, down from 6.8% in July