Proactive Investors - UK inflation eased to its lowest rate in three years in September, driven chiefly by lower airfares and petrol prices.
The update from the Office for National Statistics revealed that September's consumer prices index was up 1.7% compared to a year ago, the lowest since April 2021.
CPI last month was down from the 2.2% annual rate in August and the 4.0% rate at the start of this year, as well as being lower than the 1.9% that the market expected.
On a monthly basis, CPI was flat, which was softer than the previous 0.3% monthly increase and below expectations for a 0.1% rise.
Core CPI, which strips out more volatile prices like food and fuel, was up 3.2% year-on-year, down from the prior 3.6% and below the 3.4% consensus forecast,
Services CPI, a key measure for the Bank of England to keep track of the persistence of inflation, printed at 4.9%, down from the prior 5.6% and below the 5.2% expected.
“Inflation eased in September to its lowest annual rate in over three years," said ONS chief economist Grant Fitzner.
"Lower airfares and petrol prices were the biggest driver for this month’s fall. These were partially offset by increases for food and non-alcoholic drinks, the first time that food price inflation has strengthened since early last year.
"Meanwhile the cost of raw materials for businesses fell again, driven by lower crude oil prices."