UK CPI inflation held at 2.7% as RPI creeps higher

The UK's main inflation rate has remained at 2.7% for the third month in a row, broadly in line with economists' expectations, despite steep rises in energy bills.

Official data from the Office for National Statistics (ONS) showed consumer prices index (CPI) inflation was unmoved in December despite expectations higher energy costs would push it up. The ONS said rising energy prices were cancelled out by falling air fares, keeping a lid on CPI. Retail prices index (RPI) inflation rose marginally from 3% to 3.1%. CPI inflation has tumbled sharply from its three-year high above 5% back in 2011, but experts fear it will remain above target for some time as the impact of quantitative easing (QE) plays out. The government has pumped £375bn wort...