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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."