By Marcus Leach
The level of inflation was unchanged in November according to official data released by the Office for National Statistics (ONS).
Data from the ONS showed CPI inflation held steady at 2.7% in November, following a 0.5% rise in October, which was attributed to the rise in university tuition fees.
Today's news offered some relief that October's rise did not represent a broader trend of sharp rises. However experts warned that relief will be shortlived with a return to rises likely in the New Year as CPI heads towards a likely peak of around 3.5%.
Retail prices index (RPI) inflation, which includes housing costs, fell to 3% last month from 3.2% in October.
"The Bank of England's inflation targets have spent much of the year looking optimistic. Now they are looking plain vain," Steve Wilkie, pensions expert at www.responsibleannuities.co.uk commented.
"October's surprise jump in CPI can no longer be written off as a blip.
"Inflation is unchanged and with it, so is the plight of Britain's households, in particular its pensioners.
"The Bank of England simply does not appear able to control inflation, and as a result Britain's beleaguered households face another year of high living costs.
"The only thing eroding quicker than our faith in the Bank of England is the value of the money in our pockets.
"As always, pensioners are feeling the pain more than most.
"Low interest rates and quantitative easing have slashed annuity rates. Stubbornly high inflation is the salt in the wound.
"Despite consistently high inflation, the economy's continued weakness means there's every chance the Bank will fire up its annuity-shredding money presses again in the New Year, meaning more misery for pensioners."
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