Concern as UK inflation stays high

UK inflation defied forecasts last month to hold at its highest rate since May, reducing the scope for the Bank of England to inject more cash into the struggling economy.

Annual consumer price inflation remained at 2.7% after a surprise jump in October, figures released yesterday show.

Inflation, which peaked at 5.2% last year, has weighed on consumer spending, holding back the economy’s recovery from its second recession in four years.