UK inflation unexpectedly remained steady at 3.8% in September, defying economists' predictions of a rise to 4%. The Consumer Prices Index held at the same level for the third consecutive month, according to Office for National Statistics figures.
The Bank of England had previously forecast that inflation would peak around September before beginning a steady decline. Economic forecasters had widely expected the rate to climb during the month.
Competing price pressures balance out
Petrol prices and airfares provided upward pressure on inflation as their previous declines slowed compared to the same period last year. These increases threatened to push the overall inflation rate higher during September.
However, falling costs for recreational and cultural purchases, including live events, helped offset the energy and transport price rises. Food and non-alcoholic drink prices also declined for the first time since May last year.
Grant Fitzner, the ONS chief economist, said: "A variety of price movements meant inflation was unchanged overall in September. The largest upward drivers came from petrol prices and airfares, where the fall in prices eased in comparison to last year. These were offset by lower prices for a range of recreational and cultural purchases including live events. The cost of food and non-alcoholic drinks also fell for the first time since May last year."
Sources used: "Office for National Statistics" Note: This article has been created with Artificial Intelligence (AI).
