Inflation drops grind to a halt in September

Overall, Consumer Prices Index (CPI) inflation remained unchanged at 6.7% in the 12 months to September, while Consumer Prices Index including owner occupiers’ housing costs (CPIH) inflation also stayed stagnate at 6.3% over the same period.  

On a monthly basis, both CPI and CPIH inflation rose by 0.5%. The largest contributing factors to these figures came from the decrease in food and non-alcoholic beverage costs – where prices fell on the month for the first time since September 2021 – and the rising price of motor fuel.  

It follows yesterday’s news that average pay growth has risen above the rate of inflation for the first time in almost two years, going up at an annual rate of 7.8% between June and August – with this being higher than the average inflation rate over the same three months.

Responding to the news, Chancellor Jeremy Hunt said: “We’ve seen across other big economies that inflation rarely falls neatly in a straight line, but if we stick to our plan then most experts expect it to keep falling this year.  

“Today’s new just show how important that is, so we ease the pressure on families and businesses.”  

David Cheadle, acting chief executive of the Money Advice Trust, meanwhile expects the news will do nothing to “alleviate the anxiety for millions of people already dealing with mounting debts”.  

He added: “Our advisers at National Debtline are hearing first-hand the impact that sustained high costs have had on struggling households. With winter fast approaching, many people are once again facing impossible choices between turning the heating on or going without meals.

“More action is needed to support households experiencing financial difficulty, including through a government backed ‘Help to Repay scheme to help with unaffordable energy arrears.”