UK inflation holds at 2.7 percent in November as lower fuel prices offset food and drink hikes

Official figures show that inflation in the United Kingdom held steady at 2.7 percent in the year to November as lower fuel prices helped offset higher costs for food and beverages.

The Office for National Statistics said Tuesday that prices of food and non-alcoholic drinks rose by 1.1 percent since October while prices of petrol and diesel fuel dropped. Air fares also fell by 8.3 percent since October in a traditionally slow month for travel.

Inflation had dropped to 2.2 percent in September, nearing the official Bank of England target of around 2 percent.

Analysts expect inflation to rise in December as higher utility charges kick in.