UK inflation remained at 6.7% last month as easing food and drink price rises were offset by higher petrol and diesel prices for motorists, according to official figures.

It halts three consecutive months of waning pressure on household budgets.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation stayed at the same rate as seen in August, despite expectations that inflation would fall again.

Analysts had predicted inflation would dip to 6.6% for the month.

The reading is set to be used to calculate the increase in benefits payments next year, as well as outlining rises in some taxes, such as business rates.

It also comes after separate figures from the ONS on Tuesday showed that wages outpaced inflation for the first time in nearly two years.

ONS chief economist Grant Fitzner said: “After last month’s fall, annual inflation was unchanged in September.

“Food and non-alcoholic drinks prices eased again across a range of items, with the cost of household appliances and air fares also falling this month.

“These were offset by rising prices for motor fuels and the cost of hotel stays.”

The costs of food and non-alcoholic drinks are still significantly higher than a year ago but are now falling month on month, statisticians at the ONS said.

The price of supermarket staples in September was still 12.1% higher than the same month a year ago. However, the inflation rate declined compared with the 13.6% figure recorded in August.

The ONS said the products which saw inflationary pressure ease back most included milk, cheese and eggs.

Furniture and household goods also had a downward effect on the inflation rate after price rises eased, particularly for larger household appliances.

Elsewhere, these reductions were offset by motor fuel costs.

The ONS said prices were still almost 10% lower than this time last year, but jumped 3.6% against levels from August, as supply restrictions in the Middle East caused oil prices to increase.

Inflation remains significantly above the Bank of England’s 2% target rate, while there is also still pressure on the Government to meet its pledge of halving inflation in 2023. It will need the rate to fall to below 5.4% by the end of the year.

However, shortly after the inflation figures were published, Treasury minister Andrew Griffith insisted the Government is “on track” to meet this commitment.

Chancellor Jeremy Hunt said: “As we have seen across other G7 countries, inflation rarely falls in a straight line, but if we stick to our plan then we still expect it to keep falling this year.

“Today’s news just shows this is even more important so we can ease the pressure on families and businesses.”

The latest figures also showed the CPI measure of inflation including housing costs (CPIH) was 6.3% last month, remaining at the same rate as seen in August.

The Retail Prices Index meanwhile slowed to 8.9% from 9.1% in the previous month.