The inflation rate remained at 1.6 per cent last month as the impact of soaring utility bills was offset by falls in petrol, clothing and furniture prices.
The consumer prices index, while remaining at its highest level since June, stayed below the 2.0 per cent figure targeted by the Bank of England in setting interest rates.
National Statistics said that transport costs fell last month, as supermarkets engaged in a forecourt price war, while deep discounting by furnishing and clothing stores exerted “large downward” pressure on inflation.
However, the electricity and gas bills rose of a fourth success month, “mainly reflecting the ongoing impact of tariff increases from a number of suppliers announced in the autumn”. A surge in gas prices, which has been investigated by Ofgem, the energy watchdog, has affected both gas suppliers and electricity companies operating gas-fired power stations.
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The data come amid reviving concerns over inflation, with data yesterday showing a surge in factories’ raw material costs viewed by many analysts as indicating strong pressure for price rises.
Howard Archer, the Global Insight economist, said: “We believe that inflationary risks have risen recently, and the odds have shifted towards the Bank of raising interest rates in the late spring or early summer.”
The Bank will tomorrow publish its quarterly Inflation Report, detailing UK inflation and growth forecasts.