Consumer price inflation was lower than expected last month, suggesting that retailers are finding it difficult to pass on higher costs.

However, economists said the data would do little to ease the Bank of England’s concerns over intense price pressures. The Office for National Statistics (ONS) said the consumer prices index (CPI) rose by 0.4 per cent last month, leaving annual inflation unchanged at 2.5 per cent – above the Bank’s target but just below analysts’ expectations of 2.6 per cent.