Last month, UK inflation slipped under the target rate set by the Bank of England, marking the first occasion since April 2021 as revealed by the latest numbers. Noticeably flatter than the predicted 1.9 per cent, the Consumer Prices Index (CPI) inflation backtracked to 1.7 per cent in September, compared with 2.2 per cent the month before, as informed by the Office for National Statistics (ONS).
This September outcome influences a plethora of government decisions concerning taxation and expenditure adjustments for the year ahead. As a result, state benefits in the UK will see a 1.7 per cent hike next year. The state pension too is set to rise by 4.1 per cent in the forthcoming April, in line with the triple-lock policy.
Grant Fitzner, leading economist at the ONS, expressed that there has been a notable relaxation in inflation in September, achieving its leanest year-on-year rate in the span of over three years. He attributed this month’s decline largely to decreased costs for air travel and petrol.