The rate of inflation has fallen below 2 per cent in September
The retail price index stands at 1.7 per cent, its lowest level since April 2021 and down from 2.2 per cent in August
Lower airfares and petrol prices were the main drivers for the fall partly offset by rises in food prices,the first time that food inflation has increased since last year
“Inflation has now been under 2.5% for six consecutive months, which will come as a relief to millions of workers as this means the real value of wages has increased by 1.9% on the year. However, due to the legacy of high inflation and stagnating pay packets over the last 16 years, average wages are just £20 a week higher in real terms than they were at the start of the global financial crisis in August 2008.
says Ben Harrison, Director, Work Foundation at Lancaster University,
“This means that despite inflation falling below the Bank of England’s target, workers in low-paid and insecure work are still facing high levels of financial insecurity. As the Government approaches its first Autumn Budget, they must prioritise creating a pathway to a genuine Living Wage in the future, while also ensuring immediate cost of living support such as the Household Support Fund remains available for workers who need it beyond March 2025.”
