INFLATION remained unchanged last month as higher food and transport costs offset slower price increases for items such as furniture.

The annual rate of Consumer Price Index inflation remained unchanged at 1.6 per cent for the third consecutive month, the Office for National Statistics said.

This was broadly in line with what analysts had predicted - although some had forecast a slight rise - and the figures mean inflation is still within the Government's target of two per cent.

A large upward effect came from food prices, which rose faster in February than during the same month last year as poor weather held back supplies of salad items.