Inflation slowed unexpectedly in September as the Bank of England is set to tackle the acceleration by hiking interest rates.
Consumer Prices Index (CPI) rose 3.1 per cent in the year to September, down from 3.2 per cent to August, official data showed.
Increased prices for transport were the largest contributor to price rises, at 0.91 percentage points, according to the Office for National Statistics.
Restaurants and hotels made the largest downward contribution to the change in the inflation rate. This was because the government’s Eat Out to Help Out hospitality meal discount scheme of August 2020 dropped out of the annual comparison.
To find out more about how we can assist you with your Second Charge Mortgage please click here
The Bank of England said last month that expected inflation to rise slightly above 4 per cent in the last quarter of 2021.
Mike Hardie, head of prices at the ONS, said: “However, this was partially offset by most other categories, including price rises for furniture and household goods and food prices falling more slowly than this time last year.
“The costs of goods produced by factories rose again, with metals and machinery showing a notable price rise. Road freight costs for UK businesses also continued to rise across the summer.”
On a monthly basis, CPI increased 0.3 per cent in September 2021, compared with an increase of 0.4 per cent in September 2020.
Businesses have warned of inflationary pressures with energy prices rocketing in recent weeks.
By Emily Hawkins
Source: City AM
Discover our Second Charge Mortgage Broker services.