The rate of inflation unexpectedly remained steady in September at 6.7% which was mostly driven by rising fuel prices, according to the latest data from the Office for National Statistics (ONS).
This comes despite predictions from economists that it would fall to 6.6%.
The ONS said that increasing petrol prices offset falls in food and non-alcoholic drink prices, which has been the largest contribution to the declining rates of inflation.
The Consumer Prices Index (CPI) rose by 6.7% in the 12 months to August 2023, down from 6.8% in July.
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ONS chief economist, Grant Fitzner, said: “After last month’s fall, annual inflation was unchanged in September.
“Food and non-alcoholic drinks prices eased again across a range of items with the cost of household appliances and air fares also falling this month. These were offset by rising prices for motor fuels and the cost of hotel stays.”
While wholesale costs on food have lowered which has been passed through to supermarket stores, fuel prices will continue to remain under pressure as global oil costs have been lifted due to production cuts by big oil-producing countries, Sky News reported.
However, Chancellor Jeremy Hunt added: “As we have seen across other G7 countries, inflation rarely falls in a straight line, but if we stick to our plan then we still expect it to keep falling this year.
“Today’s news just shows this is even more important so we can ease the pressure on families and businesses.”
