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UK inflation stays at 6.7% as petrol goes up but food prices fall

Inflation, which measures the rate of price rises for goods and services, was unchanged at 6.7% in the year to September, according to official figures. 

According to a Reuters survey of economists, the anticipated slowdown in the Consumer Prices Index (CPI) for September was projected to be 6.6%. However, the actual figure, which was higher than expected, can be largely attributed to the escalating fuel prices, casting a shadow over the government’s goal of cutting inflation in half this year. 

There however, optimism for a significant decrease in the inflation rate in October, when adjustments to the energy price cap are factored into the data. The inflation figure for September holds particular significance, as it plays a key role in determining the upcoming April increases in benefit payments and certain taxes, such as business rates. 

The Treasury Minister Andrew Griffith said “No decisions had yet been taken on the levels to be imposed ahead of next month’s autumn statement, adding that the target to halve inflation this year was on track” during an interview with Sky News. 

The Office for National Statistics (ONS) said the largest contribution to the easing of inflation came from food and non-alcoholic drinks. 

The report marked the first monthly fall in these costs since September 2021. 

(Source BBC News)