But economists expect inflation to rise further in the coming months, before falling back towards the official target rate by the end of the year.
The consumer prices index (CPI) held steady at 2.7% last month, according to the Office for National Statistics, despite increases in the country’s utility bills.
Electricity and gas prices exerted the greatest upward pressure on inflation after increasing by 3.9% over the month. However, this was partially offset by falls in fuel costs.
CPI remains above the Bank of England’s 2% target rate. It has been above the target since November 2009.
Howard Archer, chief UK and European economist at IHS Global Insight, said: “It still looks very possible that increased energy tariffs and higher food prices could push consumer price inflation up to 3% early in 2013 and keep it there for a while.
“Further utility price hikes will kick in during January, while bad harvests look likely to push food prices higher.”
Capital Economics chief UK economist Vicky Redwood added: “[Inflation] will probably stay relatively high for most of this year, prompting households’ real pay to fall again in 2013.
“But we continue to expect inflation to fall back below its target towards the end of the year as the food and energy effects fade.”
