UK inflation steady at 2.8 percent

Associated Press

LONDON (AP) — Official figures show Britain's inflation rate was unchanged in March and above the Bank of England's target.

The Office for National Statistics says Tuesday that consumer prices were 2.8 percent higher in March than the year before, with hefty rises in car insurance premiums pressuring household budgets.

Inflation remains at its highest rate since last May and above the Bank of England's 2 percent target.

Analyst Chris Williamson of Markit says inflation will likely increase in coming months — and that will make it tough for the bank to do more to shore up the ailing British economy.

Some worries over inflation have been eased with the news that some fuel retailers are reducing the price at the pump after recent falls in crude oil prices.

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