By Ian McConnell
ANNUAL UK inflation dipped in September but remained well above the Bank of England’s two per cent target, official figures show, and a renewed rise is anticipated.
The Office for National Statistics said yesterday that annual UK consumer prices index inflation edged down from 3.2 per cent in August to 3.1% in September.
The large downward effect on annual inflation last month from the base-year effect of a recovery of restaurant and cafe prices in September 2020 following Chancellor Rishi Sunak’s Eat Out to Help Out discount scheme the previous month was flagged by the ONS.
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The figures show petrol prices averaged 134.9 pence per litre in September, up from 113.3p a litre a year earlier. This is the highest recorded since September 2013, the ONS noted.
Colin Dyer, client director at financial group abrdn, said: “September’s slight inflation dip is not a reflection of the uncertain and uncomfortable period currently felt by many households.
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"Overall, we believe there is continuing, short-term upward pressure on inflation, including fuel, energy and food prices, pushing prices higher. In fact, the Bank of England is expecting inflation to exceed 4% before the end of the year – coinciding with what is already an expensive time for many.”
Ed Monk, investment director for personal investing at Fidelity International, said: “The slight easing back of inflation doesn’t change the cost-of-living crisis facing households. The headline rate may have dipped to 3.1% but that was helped by year-on-year comparisons for restaurant prices... Beyond that, many of the items we all need every day are getting more expensive.”
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