Inflation holds as leisure costs offset weaker fuel rises

The rate of inflation remained steady in January, as weaker price rises for fuel were offset by expensive tickets to family attractions.

It means the Consumer Price Index measure of inflation (CPI) remains unchanged from 3% in December, and is still lower than the most recent peak of 3.1% in November.

However, it remains above the Bank of England’s target of 2% – and came in higher than economists’ predictions of 2.9%.

The Office for National statistics said he price of motor fuels – the largest downward contributing factor to change in the rate – rose by less than they did a year ago.

The main upward effect on the rate came from prices for a range of recreational venues such as zoos and gardens, for which prices fell by less than they did a year ago.

CPI measures the growth in price of everyday items including fuel, food, clothing and household goods.

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Inflation has been accelerating largely thanks to the collapse in the pound following the Brexit vote, which makes imported goods more expensive.

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