OIl pushes UK inflation higher

Higher petrol and oil prices helped push UK inflation up in March

LONDON, England -- UK inflation edged higher in March, due to higher petrol and oil prices, but not enough to prompt a hike in interest rates.

The underlying inflation rate -- minus home loan costs -- rose to 2.3 percent in March from 2.2 percent in the previous month. That is still under the Bank of England's target of 2.5 percent.

"This was bang in line with what the market expected but nevertheless a good result. It is confirmation that there is little sign of inflationary pressures in the UK at the moment,'' Adam Chester, an economist at the Halifax bank, told Reuters.

"It is confirmation that there is little sign of inflationary pressures in the UK at the moment,'' he said. "I don't think the Bank of England is biting at the bit to

put up interest rates."

The BoE's key rate is now at a 38-year low of 4 percent, after cutting its benchmark seven times last year in an effort to kick start a sluggish economy.

The overall rate of inflation, which includes housing costs, rose to 1.3 percent last month from 1 percent in February.

Petrol and oil prices had the biggest impact on consumers. Crude prices have surged in recent weeks, with Brent for May delivery reaching $27 a barrel at one point.

In midday trading in London on Tuesday, oil was up 59 cents to $24.65.