UK inflation stays steady at 2.7 per cent as higher air fares are offset by lower petrol prices

LONDON – Official figures show that inflation in Britain held steady at 2.7 per cent in September, as higher air fares were offset by lower petrol and diesel prices.

The Office of National Statistics reported Tuesday that consumer price inflation has been broadly stable since the spring of 2012.

However, the rate remains above the Bank of England’s inflation target of 2 per cent. Though the bank continues to monitor inflation, it has kept its key interest rate at the record low of 0.5 per cent in hopes of boosting the economy, which has shown some recent signs of life.

Economist Samuel Tombs of Capital Economics says airfares are often volatile from month to month, and that inflation is likely to fall back to the 2 per cent target soon.