UK Inflation: September CPI rate of 3.8 per cent is same as July and August says Office for National Statistics - to surprise of economists
The cost of food is dropping - for the first time since May last year, according to Office for National Statistics.
The drop in food prices - not just a slowing of price rises but an actual reduction - balanced out by rising petrol prices and airfares.
It meant that the rate of Consumer Prixes Index was 3.8 per cent in September - the same as in July and August - even though economists had predicted a reading of four per cent.
The Bank of England had previously predicted that UK inflation would peak around September before steadily falling back down.
Office for National Statistics chief economist Grant Fitzner said: “A variety of price movements meant inflation was unchanged overall in September. The largest upward drivers came from petrol prices and airfares, where the fall in prices eased in comparison to last year.
“These were offset by lower prices for a range of recreational and cultural purchases including live events. The cost of food and non-alcoholic drinks also fell for the first time since May last year.”