The latest price inflation figures from the Office for National Statistics show the Consumer Prices Index (CPI) measure of price inflation remains unchanged at 2.7% for the twelve months to November 2012.
Analysts had expected to see a modest fall in CPI inflation, after it jumped unexpectedly from 2.2% to 2.7% the previous month.
CPI inflation had been pushed up in October as a result of the big increase in many university tuition fees.
The Retail Prices Index (RPI) measure of price inflation fell slightly for the year to November, to 3% from 3.2% in October.
Despite the medium term outlook for price inflation being lower, we expect to see higher inflation again for a time in the New Year, as rising household energy prices feed through into the calculation.
Hopefully any rise in price inflation in the New Year will be balanced by lower petrol prices and heavy discounting activity by retailers as they fight for business in the January sales.
What this stubbornly above target inflation does indicate is that the Bank of England could hold off from further quantitative easing until CPI once again moves towards the 2% government target.
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