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

Budget wish lists: Advisers share hopes and fears ahead of 26 November

Budget wish lists: Advisers share hopes and fears ahead of 26 November

Is increasing income tax the chancellor’s ‘least worst’ option?

Jenna Brown
clock 17 November 2025 • 9 min read
Bank of England holds interest rates at 4% as Budget looms large

Bank of England holds interest rates at 4% as Budget looms large

Five MPC members voted to hold rates

Michael Nelson
clock 06 November 2025 • 3 min read
Partner Insight: Tariffs are here to stay. What's next for investors?

Partner Insight: Tariffs are here to stay. What's next for investors?

The current outlook for US tariffs is complex and their full impact on growth remains to be seen. Columbia Threadneedle Investments explores what advisers need to know, key events to keep top of mind and how to navigate the uncertainty.

Columbia Threadneedle Investments
clock 23 October 2025 • 5 min read