19 October: September Rate Up From 9.9%, Back To July Level
UK inflation has burst through the double figure mark once again with a reading of 10.1% in the year to September 2022, according to the Office for National Statistics (ONS), writes Andrew Michael.
The latest rise in the Consumer Prices Index (CPI) – from a figure of 9.9% recorded in the 12 months to August – means that inflation is at the same level as July, dashing hopes that rising prices were starting to tail off.
September’s CPI reading is important because it is one of the three measures used by the government – alongside wage growth and a minimum uplift rate of 2.5% – to determine the pension triple lock guarantee.
Assuming the government sticks to the triple lock arrangement, today’s figure – which is the largest of the three measures – means that state pensions will rise by 10.1% from the start of the tax year next April.
However, there are a number of reports that the Prime Minister and her Chancellor will break the pledge to use the highest of the three figures given that inflation is so high.
The ONS said the CPI rose 0.5% in September compared with August, a larger increase over the same month than in 2021 when the index rose 0.3%. The main drivers behind rising prices came from food, non-alcoholic drinks and transport, although the continued fall in the price of motor fuels made the largest, partially offsetting, downward contribution to the change in…
