Stubborn UK inflation holds steady as petrol prices rise
British consumer price inflation (CPI) unexpectedly held at 6.7% in September, remaining the highest of any major advanced economy and keeping alive the possibility of another rise in interest rates.
A rise in petrol prices between August and September was the main factor stopping a fall in the annual rate, the Office for National Statistics said on Wednesday.
But two other less volatile measures closely watched by the Bank of England (BoE) – core inflation and services prices – were also robust, which is likely to leave some policymakers worried about longer-term price pressures.
“Progress in bringing inflation down is proving slow,” said Ian Stewart, chief economist at accountancy firm Deloitte. “The persistence of underlying inflation, and service price pressures, suggests that interest rates are likely to stay close to current levels for much of the next year.”