Consumer price inflation remained above target for a third consecutive month in December, leading economists to warn that rising price pressures could prevent the Bank of England cutting rates aggressively to counter slowing growth. Financial Times

The Office for National Statistics said yesterday that consumer prices rose 0.6% last month, keeping annual inflation at 2.1%. The reading was just above analysts’ expectations and higher than the Bank’s own forecast that inflation would average 1.9% last quarter.