- UK inflation held steady at 6.7% in September
- Services prices rose, ending the decline in inflation
- Core inflation eased slightly to 6.1% in September
- Services inflation increased to 6.9% in September
- Wage growth eased in August
- Bank of England struggling to bring inflation down
- BOE left benchmark interest rate unchanged at 5.25%
- September’s inflation likely boosted by Middle East conflict and back-to-school season
- Inflation expected to subside in the coming months
UK inflation remained unchanged in September as services prices rose, ending the decline in inflation. The consumer price index rose by 6.7% on a yearly basis, in line with economists’ expectations. Core inflation, which excludes volatile changes in energy and food prices, eased slightly to 6.1%. Services inflation increased to 6.9%, which may concern policymakers at the Bank of England. Wage growth also eased in August. The Bank of England is facing challenges in bringing inflation down while avoiding a recession. Despite September’s inflation rate, experts believe that inflation will continue to subside in the coming months, with easing food inflation alleviating pressure on shoppers’ wallets.
