The UK's inflation rate remains unchanged at 6.7% in the year to September. While food inflation slowed, fuel prices rose significantly, offsetting the decline. To combat inflation, the Bank of England increased interest rates to 5.25%.
Inflation is measured using the Consumer Prices Index (CPI), which includes hundreds of everyday items in a "basket of goods." Core inflation, excluding energy, food, alcohol, and tobacco, was at 6.1% in September.
Rising food and energy bills, along with global factors like the war in Ukraine, contributed to high inflation. The Bank of England aims to keep inflation at 2% and has increased interest rates to reduce demand and slow price rises.
However, unions argue that many workers have received smaller pay increases, leading to strikes over pay. The Bank predicts inflation will drop to about 4.5% by the end of the year and fall further in 2024. Inflation is also impacting other countries, including those in the eurozone and the US.