State pensions to rise 3.1% after UK inflation falls in September – business live | Business
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UK inflation has fallen slightly, but remains well above the Bank of England’s target.
The consumer price index rose 3.1% in September, according to new figures released this morning by the Office for National Statistics.
That’s down from 3.2% in August, when inflation hit its highest rate in nine years.
But, this drop is mostly due to the impact of last summer’s Eat Out to Help Out program – as prices increased in September 2020 when the program ended. So it’s probably just a temporary respite.
Many other prices have increased over the past year as the cost of living has hit households.
As this chart shows, transportation, food, and household goods and services have all pushed up inflation over the past year.
Mike hardie, responsible for prices at ONS, Explain :
“Annual inflation edged down slightly in September due to the unwinding effect of last year’s ‘Eat Out to Help Out’, which contributed to the rate hike in August.
“However, this was partially offset by most other categories, including price increases for furniture and household items and food prices which fell more slowly than around the same time last year.
In September alone, prices rose 0.3%, driven by higher prices for clothing and footwear, housing and household services, recreation and culture, and furniture and household items. .
This follows a record inflation jump in August from 2% to 3.2%, as the cost of living accelerated ahead of the Bank of England’s 2% target.
The Bank expects inflation to rise by more than 4% by the start of next year. And yesterday, MPs were warned that prices were rising at “terrifying” speed in the hospitality industry, with inflation reaching 18%.
Ian Wright, executive director of the industry body Food and Beverage Federation, told MEPs from the Committee on Business, Energy and Industrial Strategy:
“Inflation is a greater scourge than almost anything else because it discriminates against the poor.”
More details and reactions to follow …
- 7am BST: UK consumer price inflation for September
- 7am BST: UK producer price report for September
- 9:30 a.m. BST: UK House Price Index for August
- 10 a.m. BST: Eurozone inflation report for August (final estimate)
- 3:30 p.m. BST: EIA weekly US oil inventory figures