Sterling drops as September inflation falls to lowest rate this year

Down from 2.7%

Laura Dew
clock • 2 min read

UK inflation fell to 2.4% in September, down from 2.7% in August, the lowest level this year and therefore reducing pressure on the Bank of England to raise interest rates.

According to the Office for National Statistics, the Consumer Price Index decreased as a result of falling prices for food and non-alcoholic beverages as well as transport and recreation and culture.  Food and non-alcoholic beverage prices fell by 0.1% between August and September 2018 compared with a rise of 0.8% between the same two months a year ago. Upward contributions came from increases in the price of electricity and gas, which rose this year but were unchanged in the same two months in 2017. State pension set to rise 2.6% as inflation falls below expectations Analysts h...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Bank of England 'presses pause, not stop' as it holds rates at 3.75%

Bank of England 'presses pause, not stop' as it holds rates at 3.75%

Majority of 6-3

Patrick Brusnahan
clock 30 July 2026 • 2 min read
Burnham calls for National Care Service acceleration

Burnham calls for National Care Service acceleration

Social care commitments

Cameron Roberts
clock 29 July 2026 • 4 min read
News editor's view: Burnham's Britain arrives

News editor's view: Burnham's Britain arrives

The news editor's Friday Night Takeaway from 24 July

Isabel Baxter
clock 24 July 2026 • 3 min read