UK inflation rate lower than expectations at 3.8%
Getty ImagesThe UK inflation rate has remained stable at 3.8% in September, which was lower than expectations, official figures show.
Britain’s inflation rate was also 3.8% in July and August, according to the Office for National Statistics (ONS), which is still much higher than the Bank of England’s 2% target.
However, the central bank’s economists had forecast inflation to rise to 4% in September.
ONS chief economist Grant Fitzner said: “The largest upward drivers came from petrol prices and airfares, where the fall in prices eased in comparison to last year.”
But he noted that the cost of food and non-alcoholic drinks fell, “for the first time since May last year”.
He added: “These were offset by lower prices for a range of recreational and cultural purchases including live events.”
The inflation figures for the past three months were the joint-highest recorded since January 2024, when the rate was 4%, according to the ONS.
Inflation in the UK remains well below the 11.1% figure reached in October 2022, which was the highest rate for 40 years.
