This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-21025585
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| 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. |
| A rise in electricity and gas prices was offset somewhat by a fall in fuel costs and air transport, the Office for National Statistics (ONS) said. | A rise in electricity and gas prices was offset somewhat by a fall in fuel costs and air transport, 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%. | 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%. |
| Weak economy | Weak economy |
| Phil Gooding from the ONS told the BBC: "By far the largest upward effect comes from domestic gas and electricity. Here we saw the majority of the pre-announced price increases coming into the index for December." | Phil Gooding from the ONS told the BBC: "By far the largest upward effect comes from domestic gas and electricity. Here we saw the majority of the pre-announced price increases coming into the index for December." |
| Electricity prices were up 3.9% compared with December 2011, while gas prices were 5.2% higher. Prices of food and non-alcoholic drinks rose 3.8%. | Electricity prices were up 3.9% compared with December 2011, while gas prices were 5.2% higher. Prices of food and non-alcoholic drinks rose 3.8%. |
| However, motor fuel costs fell 0.2% while air transport dropped by 6.8%. | However, motor fuel costs fell 0.2% while air transport dropped by 6.8%. |
| Sarah Hewin, head of research at Standard Chartered, told the BBC that she was optimistic that the rate of inflation would start to fall. | 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. | "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." | "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." |
| However, John Longworth, director general of the British Chambers of Commerce, said he expected inflation to rise in the near term, as further rises in utility and food prices kicked in. | |
| "Higher inflation is clearly a concern for the UK economy as it increases the squeeze on both businesses and consumers, further exacerbating an already weak economic environment," he said. | |
| TUC general secretary Frances O'Grady called for "healthier pay rises". | |
| "Unless inflation falls are matched by stronger pay growth, 2013 will be the fourth year in a row that people have suffered real wage cuts," she said. | |
| A Treasury spokeswoman pointed out that inflation was nearly half of its 5.2% peak and that the government had taken action to help households with the cost of living, including a further increase in the tax-free personal allowance and cancelling the fuel duty increase that was planned for this month. | A Treasury spokeswoman pointed out that inflation was nearly half of its 5.2% peak and that the government had taken action to help households with the cost of living, including a further increase in the tax-free personal allowance and cancelling the fuel duty increase that was planned for this month. |