Inflation holds firm as easing food costs offset by fuel rises

The Office for National Statistics said Consumer Prices Index inflation stayed at 6.7%, the same rate as seen in August.

Inflation holds firm as easing food costs offset by fuel rises

UK inflation remained at 6.7% last month as easing food and drink price rises were offset by higher petrol and diesel prices for motorists, according to official figures.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation stayed at the same rate as seen in August, despite expectations inflation would fall again.

Analysts had predicted inflation would dip to 6.6% for the month.

The reading is set to be important in calculating how much benefits payments will increase next year, as well as outlining increases in some taxes, such as business rates.

ONS chief economist Grant Fitzner said: “After last month’s fall, annual inflation was unchanged in September.

“Food and non-alcoholic drinks prices eased again across a range of items with the cost of household appliances and air fares also falling this month.

“These were offset by rising prices for motor fuels and the cost of hotel stays.”

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