Inflation stuck at 6.7% as petrol goes up but food prices drop

The rate of inflation failed to nudge downwards as expected last month, remaining at an annual rate of 6.7% according to official figures.

The headline consumer prices index (CPI) measure had been predicted to slow to 6.6% in September by a Reuters poll of economists.

The higher than expected number – largely a consequence of rising fuel prices – hangs over the government’s target of halving inflation this year.

However, a big drop in the inflation rate is tipped for the month of October when shifts in the energy price cap will be reflected in the data.

The Office for National Statistics (ONS) said the largest contribution to the easing of inflation came from food and non-alcoholic drinks.

The report marked the first monthly fall in these costs since September 2021.

They have been a thorn in family budgets since energy and commodity costs soared in the wake of Russia’s invasion of Ukraine, with higher prices passing along supply chains from field, to factory and fork.

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