UK inflation remains steady

<p>Inflation in the UK has held firm at 2.7 per cent.</p>

Inflation in the UK remains well above the target of two per cent set by the government.

The latest inflation data has indicated that the rate was 2.7 per cent during September, which is the same figure that was recorded in August.

Prices are therefore still rising faster than wages, which were shown in the official figures to have increased by just over one per cent on average over the same period.

Commenting on the release of the new data, Jeremy Cook, chief economist at the currency brokers World First, told BBC News: "The disconnect between wages and prices continues apace and following news from the service industry that consumer facing companies are struggling will cast further doubt on a consumer-driven recovery."

Downward impacts on inflation last month included petrol and diesel prices, but air fares rose to ensure inflation remained at the same level.

The government's target of two per cent for inflation remains some way out of reach.

It was recently announced by the Bank of England that it will not consider lowering the base rate until unemployment in the UK drops to seven per cent.

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