By Ian McConnell

ANNUAL UK consumer prices index inflation rose from 0.2 per cent in August to 0.5% last month, with upward effects from restaurants and cafes following the end of the UK Government’s Eat Out to Help Out discount dining scheme.

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Transport costs also exerted an upward impact on annual inflation, which is way adrift of the Bank of England’s 2% target. The Office for National Statistics, publishing the data, cited “a larger upward contribution from the purchase of second-hand cars, where prices have potentially been boosted by increased demand as people, reportedly, look to reduce their reliance on public transport”.

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The EY ITEM Club said low inflation was a boost for consumer purchasing power amid rising unemployment and the prospect of limited pay rises.