UK inflation holds steady at 3.1% in September
The Office for National Statistics (ONS) has today announced Consumer Price Inflation (CPI) held steady at the annual rate of 3.1% in September.
The latest figure represents the tenth consecutive month that inflation has been above the Bank of England’s target of 2%.
The figure did not surprise analysts, who had expected CPI to remain above the 3% mark.
Inflation has remained stubbornly high again this month as a fall in transport costs offset a surge in clothing prices and higher food inflation.
Meanwhile, Retail Price Inflation (RPI), which includes mortgage costs and is used as the basis for many wage deals, fell to 4.6% in September, down from 4.7% in August.
In other news today, the British Chambers of Commerce (BCC) echoed other reports and suggested the Bank of England needs to inject more money into the economy, via its quantitative easing (QE) scheme.
QE, also known as printing money, is a process whereby the Treasury injects funds into the financial system to ease pressure on banks by giving them extra capital.
Over recent days, leading business groups, as well as Bank of England policymakers, have argued that more money needs to be injected into the economy to withstand the impact of massive spending cuts and the forthcoming VAT rise.
The Bank embarked on its £200 billion QE programme in March 2009, when the economy was in the midst of its worst recession in more than five decades.