According to the Office for National Statistics, inflation in the UK held steady at 3.8% in the year to September. This is below the Economists’ and the Bank of England’s prediction of a 4% rise.
Key Factors Keeping Inflation Steady
Transport was one of the main driving forces behind inflation, staying at 3.8% according to the Office for National Statistics, says petrol prices and airfares didn’t fall as much this September as they did last year.
But lower prices for food and non-alcoholic drinks helped offset that. The inflation rate for food and non-alcoholic drinks was 5.1% in the year to August it came down to 4.5% for the year to September.
Some of the largest increases in the 12 months to September were in housing and household services at 7.3% and the education sector which saw a rise of 7.2%.
Alcohol and tobacco was 5.8% more expensive than a year ago in September, followed by costs in the communication industries rising by 4.7%.
Food and non-alcoholic goods rose at 4.5% and the year to September saw the costs in the restaurant and hotels sector rise by 3.9%.
Transport costs saw a 3.8% increase, matching the CPI average, whereas clothing and footwear rose by just 0.5% and furniture and household goods 0.4%.
Rachel Reeves Response
Chancellor of the Exchequer, Rachel Reeves says she is “not satisfied” with the unchanged 3.8% figure.
“For too long, our economy has felt stuck, with people feeling like they are putting in more and getting less out,” Rachel Reeves says in a statement.
“That needs to change.
“All of us in government are responsible for supporting the Bank of England in bringing inflation down.”