CPI inflation holds steady in September

CONSUMER Price Index (CPI) inflation remained at 3.1 per cent in September, unchanged from August official figures released yesterday showed, continuing the trend of above target inflation.

Meanwhile, Retail Price Index (RPI) inflation was 4.6 per cent, down from 4.7 per cent in August but above analysts expectations of 4.4 per cent.

The Office for National Statistics (ONS) said there were both significant upward and downward pressures on the CPI inflation rate between August and September.

Airfares have seen the most dramatic fall dropping 27.8 per cent this year. Fuel prices fell by 0.8 per cent in September but were still 2.3 per cent higher than a year ago.

Clothing and footwear prices rose by a record 6.4 per cent for the year to September while food prices also increased by 0.3 per cent.

The September CPI figures will be closely watched by benefit claimants as they will determine the rise in all payments, save pensions, next April.