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CPI stands at 2.7pc

Sam Cordon

February 12, 2013

It is the first time that inflation has remained unchanged for four months since records began in 1996.

Matthew Renier, director at retirement planning specialists Retire Right, said: “No change is no good for the average UK household, which remains under considerable financial pressure.

“What little money people have is being reduced even further by persistently high inflation particularly for people in retirement.”

Renier added: “Just as people need to brace themselves for a protracted low interest rate environment so they need to accept that high inflation is here to stay for some time.”

The largest upward pressures came from alcohol, with prices recovering after Christmas sales, and air fares while miscellaneous goods and services and clothing provided the largest downward pressures.

The Retail Prices Index annual inflation grew by 3.3% in January 2013, up from 3.1% in December 2012.

The Bank of England warned last week that inflation measured by CPI may stay above its 2% target for the next two years.


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