Bank of England chiefs are poised to further hike interest rates and pile more misery on mortgage holders after inflation unexpectedly remained frozen last month on 8.7 per cent.
The Office for National Statistics said rising prices for plane tickets, recreational and cultural goods and services caused the rate to stay unchanged. Worryingly, core inflation - which strips out volatile price items such as food and energy - increased to a 31-year high of 7.1 per cent, up from 6.8 per cent in April.
