Inflation unexpectedly remained steady at 3.8 per cent

Inflation unexpectedly remained steady last month as upward pressure from petrol prices and air fares was offset by easing food costs.

The rate of the Consumer Prices Index was 3.8 per cent in September – that’s the same level as July and August.

Economists had predicted a rise to 4 per cent for the month.

The weaker-than-expected rise will provide a boost for the Bank of England in its bid to bring inflation back down to its 2 per cent target rate.