Inflation static at 2.8%

INFLATION remained unchanged at 2.8% in March, according to the latest government data.

Officials said the contributions that change the Consumer Prices Index (CPI) rate were small compared with most months.

The largest upward contribution came from the recreation and culture sector where there were price rises for audio-visual equipment and books, newspapers & stationery.

The largest downward contributions came from furniture & furnishings, motor fuels and meat.

Inflation as measured by the CPI has been running above its 2% target for the past four years but the Bank of England believes it will rise further to around 3% during 2013.

The Bank expects inflation then to ease back and return to target in 2014.