Inflation dips in September

Inflation
UK inflation hits highest level since 2013, bad news for savers

Inflation has dropped in the year to September to 3.1% – down from 3.2% in August.

According to the Office for National Statistics, the rise in petrol prices and transport were the biggest contributors.

The Bank of England expect inflation to rise to 4% by the end of the year.

“However, this was partially offset by most other categories, including price rises for furniture and household goods and food prices falling more slowly than this time last year,” said Mike Hardie, head of prices at the ONS.

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“The costs of goods produced by factories rose again, with metals and machinery showing a notable price rise. Road freight costs for UK businesses also continued to rise across the summer.”