Consumer Price Index (CPI) inflation remained stable in September at 1.8 per cent.

The rise was below the Bank of England’s 2 per cent expectation, offering hope that the bank may cut interest rates.

CPI rates peaked at 3.1 per cent in March, but have now come in below expectations for three months.

Price inflation in clothing and footwear was sluggish compared with a sharp increase in September last year. The largest growth in the CPI annual rate was for food and non-alcoholic drinks.

The average pint of milk rose by about 4p a pint, a record one-month increase. The price of margarine and butter was also up, by 15 per cent.

The Retail Price Index (RPI) was down to 3.9 per cent in September compared to 4.1 per cent in August. Average mortgage interest rates remained unchanged this September but rose a year ago.


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