UK inflation remains steady

The underlying rate of inflation remained unchanged at 2.3% last month, official figures showed today.

Increases in mobile phone tariffs, the cost of wine and spirits and seasonal foods were offset by special offers and discounts on clothing, the office for national statistics said.

Clothing retailers came under pressure to encourage shoppers to stock up for their winter wardrobe despite the unusually mild weather last month.

While petrol prices fell, the decrease had little effect on the figures as prices fell by more in the same month last year, the ONS said.

Today's figures were in line with City expectations and keep the underlying rate of inflation, which excludes mortgage interest payments, below Chancellor Gordon Brown's target of 2.5%.

It means inflation is likely to be of little concern to the Bank of England next month when it meets to set interest rates for December.

The headline rate of inflation, which includes mortgage interest payments, fell 0.1% to 1.6% last month reflecting interest rate cuts made by the Bank since September 11.

The Bank's action saw average mortgage interest rates fall by 0.2% last month, the ONS said.

The headline rate of 1.6% matches the figure seen in July. It was last lower in November 1999.