By Chris Dorrell
Inflation remained stagnant in September due to rising fuel prices, although core inflation dipped slightly month-on-month.
According to figures from the Office for National Statistics (ONS) the consumer price index (CPI) came in at 6.7 per cent in September, flat on last month and higher than the 6.5 per cent expected by most economists.
Rising prices for motor fuel made the largest upward contribution to the change in the annual rates.
Core inflation – which strips out volatile components like energy and food – fell to 6.1 per cent in September from 6.2 per cent last month.
The data will do little to reassure the Bank of England that its task to tackle inflation is over.
Although the Bank of England left interest rates on hold in its most recent meeting, members of the Monetary Policy Committee (MPC) have been warning that more needs to be done to tackle inflation.
At the end of last week, Andrew Bailey said “there’s an awful lot still to do” to bring inflation back down to the two per cent target.
This week, Huw Pill said “it is important that we do not declare victory prematurely just because of movements, which are relatively mechanical, in headline inflation, are working their way through.”
More to follow
