Britain’s inflation dipped to 3.1% in September, but higher prices still to come – The National

Britain’s inflation dipped to 3.1% in September, but higher prices still to come – The National

Britain’s inflation rate dipped to 3.1 per cent in the 12 months to September after the artificial blip caused by last year’s ‘Eat Out to Help Out,’ scheme dropped out of the figures, but higher prices are still to come.

The increase in consumer prices came in a notch lower than the 3.2 per cent seen in August, the Office for National Statistics said on Wednesday, but the reading was still well above the Bank of England’s 2 per cent target for a second month.

Financial markets are pricing in a BoE lift to interest rates next month to contain an upward spiral in prices, as central bank officials expect the headline inflation rate to jump above 4 per cent this year.