UK Inflation Expected to Accelerate to 3.4% in September Driven by Fuel and Energy Costs
· Business · The Independent, Bloomberg
Economists project UK September inflation rose to 3.4% from 3.1% in August, driven by surging motor fuel prices and the end of a temporary VAT cut on family attractions. Average diesel prices surpassed £2 per litre for the first time ever in early September, with RAC figures cited as the key contributor to the acceleration. The Office for National Statistics is set to publish the official CPI figures on Wednesday, confirming the forecast rise. Overall price pressures have been rising over the summer, fuelled by the Middle East energy shock impacting household energy and fuel costs. Sanjay Raja of Deutsche Bank notes food price rises have been limited by fierce supermarket competition but may change as energy shocks and extreme weather take effect. An increase to Ofgem's price cap on household energy bills is set to kick in at the start of October, pushing dual-fuel bills higher over winter.
Why it matters
British households face rising living costs as inflation accelerates, with lower-income families disproportionately impacted by higher food and energy bills ahead of winter.
Read the original report — The Independent
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