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UK inflation holds steady at 2.7% | UK inflation holds steady at 2.7% |
(35 minutes later) | |
UK consumer prices inflation held steady at 2.7% in December, official figures have shown. | UK consumer prices inflation held steady at 2.7% in December, official figures have shown. |
Electricity and gas prices rose by 3.9% but this was offset somewhat by a 0.2% fall in fuel costs, the Office for National Statistics (ONS) said. | Electricity and gas prices rose by 3.9% but this was offset somewhat by a 0.2% fall in fuel costs, the Office for National Statistics (ONS) said. |
The CPI rate of inflation has remained been above the Bank of England's 2% target since November 2009. | The CPI rate of inflation has remained been above the Bank of England's 2% target since November 2009. |
Retail prices index (RPI) inflation, which includes housing costs, edged up to 3.1% last month from 3% in November. | Retail prices index (RPI) inflation, which includes housing costs, edged up to 3.1% last month from 3% in November. |
The figures were broadly in line with analysts' expectations. | |
It was the third month in a row that the CPI rate has come in at 2.7%. | |
Sarah Hewin, head of research at Standard Chartered, told the BBC that she was optimistic that the rate of inflation would start to fall. | |
"The outlook I think is probably for inflation falling, rather than inflation rising," she said. | |
"Unfortunately the backdrop is that the economy is continuing to struggle. We've had some pretty poor data out recently and that in turn will dampen inflation pressures." |