UK inflation rises to highest level in almost 30 years at 5.4%

[dutchman]

Surprise fall in inflation paves way for interest rate cuts



UK inflation fell unexpectedly to 1.7% in the year to September, the lowest rate in three-and-a-half years.

It means the annual rate prices are rising at is now below the Bank of England's 2% target, paving the way for further interest rate cuts.

Lower airfares and petrol prices were the main drivers behind the surprise slowdown, official figures showed, external.

Separately, September's inflation figure is also normally used to set how much many benefits will rise by next April.

UK interest rates are currently at 5%. The Bank made a first cut in August but decided to hold them last month.

It is already widely expected that they will be cut in November.

Yael Selfin, chief economist at KPMG UK, warned that although the Bank would be likely to drop rates next month, inflation is likely to rise again with household energy bills increasing this month by around 10%.

The surprise fall in inflation last month to 1.7, down from 2.2% in August, was mainly driven by airfares and fuel.

Petrol and diesel prices were significantly lower, dropping by 10.4% in September compared with the same month a year earlier.

Airfare prices for domestic, European and long-haul flights normally fall after the summer rush, but they fell more than normal last month.

However, food and non-alcoholic drink prices rose, with costs jumping for milk, cheese, eggs, soft drinks and fruit.

This was the first time food price inflation has risen March last year.

September's inflation data is normally used to calculate how much many benefits go up in April.

This includes the biggest: universal credit, which goes up at the government's discretion.

All the main disability benefits - personal independence payment, attendance allowance and disability living allowance - as well as carer’s allowance, go up by at least September's inflation rate by law.

The government has said it wants to shrink the UK's annual disability and incapacity benefits bill.

[dutchman]

There's no 'surprise' about it, inflation is always lowest in September. The government rigs it that way so they don't have to increase benefits more.

[rebbonk]

There's no 'surprise' about it, inflation is always lowest in September. The government rigs it that way so they don't have to increase benefits more.

Dead on, Dutchman. They think the public are stupid.

[dutchman]

Another example of 'shrinkflation'



There used to be EIGHT sachets in a box whereas now there are only SEVEN.

To make matters worse, you need at least TWO sachets in each cup to be able to taste them at all as they're so insipid but being an odd number you now need to buy at least TWO boxes or else have one sachet left over.

[dutchman]

NOT SAFE FOR WORK!

[dutchman]

£9.10 for medium fish and small chips tonight!

I'm not blaming the chip shop, it's still one of the cheapest in the city. Reeves' budget has put up all their expenses.