Inflation unchanged despite fall in food costs - Chamber

The rate of inflation remained unchanged for the second consecutive month – defying the predictions of city economists – according to figures released today.

The Office for National Statistics said UK inflation held steady at 6.7 per cent in September.

This is despite economists forecasting a modest fall of 0.1 per cent.

Soaring fuel costs offset the first monthly fall in food prices for two years to maintain pressure on households.

However, food and non-alcoholic drink prices fell by 0.2 per cent on the month – the first monthly decline since September 2021 – helped by fierce competition among supermarkets driving down prices for milk, cheese and eggs, as well as mineral water, soft drinks and juices.

Cameron Uppal, policy and public affairs advisor at Greater Birmingham Chambers of Commerce, said: “The rate of inflation remained unchanged for the second consecutive month, confounded many city analysts’ projections that were expecting a minor fall.

“Clearly, with global oil prices rising and the conflict in the Middle East intensifying, the longer-term impact on inflationary pressure remains to be seen and all eyes will turn to the Bank of England to see how they respond in the coming weeks in relation to setting interest rate policy.

“With the Autumn Budget fast approaching we are continuing to lobby the Government on tackling the ingrained labour market challenges, easing supply chain disruption with our European counterparts, and look at encouraging investment projects which will go some way in continuing to drive down the rate of CPI."