Inflation was unchanged last month, official figures show, indicating the Bank of England may have to keep interest rates higher for longer to bring down price rises.

The consumer prices index (CPI) measure of inflation remained at 6.7pc in September, according to the Office for National Statistics. 

Rising prices at the petrol pump made the largest contribution to price rises, offsetting falls in food and drink prices.

The inflation reading could be important in calculating how much benefits payments will increase next year, as well as outlining increases in some taxes, such as business rates.

Inflation-linked benefits, such as universal credit, and tax credits, are expected to rise in April next year by the rate of CPI inflation from this September.

However, business rates - the property tax paid by high street firms such as shops, pubs and offices - are also due to increase in April based on this CPI reading.

The figure also means that the state pension is likely to rise by 8.5pc from April. Under the “triple lock,” pensions rise by either September’s inflation reading, which was 6.7pc, wage increases in the three months to July, which was 8.5pc, or 2.5pc.

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