Inflation holds steady thanks to fall in fuel costs
Britain’s surging inflation unexpectedly held steady last month, as rising food prices were countered by a drop in fuel costs.
Figures from the Office for National Statistics showed the Consumer Prices Index (CPI) measure of inflation was 3 per cent last month, unchanged from a five-year high in September.
Economists had pencilled in a higher rate of 3.1 per cent, which would have forced Bank of England Governor Mark Carney to write a letter to Chancellor Philip Hammond.
The UK government has set an inflation target of 2 per cent, with protocol dictating that the Bank must contact Mr Hammond if inflation exceeds 3 per cent or falls short of 1 per cent.
The Bank, which raised interest rates to 0.5 per cent this month, expects CPI to peak at around 3.2 per cent.