Inflation remains at 6.7 per cent in September

Wednesday 25th October 2023 05:55 EDT

In September, inflation remained high, defying expectations of a decrease as a decline in food and drink prices was offset by increased energy costs.
Official data revealed that the Consumer Prices Index (CPI) held steady at 6.7 per cent, matching the August figure, contrary to market projections of a decline to 6.6 per cent. Chancellor of the Exchequer, Jeremy Hunt, maintained that UK inflation was on a long-term downward trajectory. Nevertheless, inflation still exceeds the Bank of England's target of 2 per cent, despite the central bank's series of aggressive interest rate hikes since late 2021.
Last month, the Bank of England (BoE) opted to keep its key interest rate steady at 5.25 per cent, breaking a streak of 14 consecutive rate hikes, as inflation unexpectedly decelerated from 6.8 per cent in July to 6.8 per cent in August.
According to KPMG chief economist Yael Selfin, there is an expectation of further easing in inflation, but the persistent concern is the impact of energy prices.

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