THE UK’s rate of inflation was 1.7% in September, new figures have shown.
The Office for National Statistics (ONS) said the Consumer Price Index (CPI) measured 1.7% in the 12 months to September.
The Consumer Price Index was released today[/caption]
It comes after inflation rose by 2.2% in the 12 months to August, unchanged from July.
Inflation is a measure of how much the prices of everyday goods such as food and clothes, and services such as train tickets and haircuts, have increased compared to a year earlier.
It’s important to note that when inflation drops it doesn’t mean that prices have stopped rising, it just means they are doing so at a slower pace.
The Bank of England has a target of keeping inflation at 2%.
Today’s reading marks the first time in three years that inflation has fallen below the central bank’s target.
Today’s figures further suggest that the state pension is now expected to rise from £11,502.40 to £11,975 per year – a £473 boost.
That’s because of the triple lock system, which sees the state pension rise in line with whatever is highest out of: wages for May to July, 2.5% or September’s inflation figures.
Revised statistics being released on Tuesday revealed that growth in employees’ average total pay was 4.1% in the three months to July – not 4%.
Today’s inflation figures do not outpace this.
