Inflation Sees Off Threat From Car Insurance

Written By Unknown on Selasa, 16 April 2013 | 16.01

The headline measure of inflation remained steady in March as a reduction in the pace of rising fuel costs offset a sharp increase in car insurance.

The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) stayed at an annual rate of 2.8%.

Some economists had predicted an increase to 3%.

A 5.8% rise in car insurance premiums were found to have piled further pressure on household budgets though slower rises in diesel and petrol prices helped cancel out the effect.

Rises in the cost of books and digital cameras were also offset by lower inflation for sofas and armchairs, the ONS said.

Separate ONS figures also showed that factory gate inflation rose by an annual rate of just 2%, the smallest increase since July, on the back of falling oil prices.

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