Brief respite for UK consumers as inflation drops to 3-month low

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British inflation fell further than expected in September, offering a brief respite to consumers.

The Office for National Statistics found inflation dropped to a three-month low last month, with consumer prices rising at an annual rate of 2.4 per cent.

That more than reversed August’s rise of 2.7 per cent, which was a six-month high, and was well below the Reuters’ poll consensus forecast of a 2.6 per cent rise.

“Coupled with the gradual up-tick in wages, the slowing rise in prices will deliver a boost to consumers’ real take-home pay packets, which will also be welcome news for retailers,” Institute of Directors senior economist Tej Parikh said.

“The Bank of England will be unruffled by this week’s data releases, and remains unlikely to budge on interest rates as it continues to monitor the impact of Brexit developments.”

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