Inflation rises to 10.1% in September

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The inflation rate hit 10.1% in the 12 months to September, according to new data from the Office for National Statistics (ONS).

This is up from 9.9% in August and sees a return to the recent 40-year high witnessed in July.

One of the biggest contributors to the rise in the inflation rate in September was a 9.3% increase in housing and household services costs. This was mostly fueled by housing costs, private rents, and soaring energy prices.

A significant increase in food and drink costs heavily affected inflation, with prices rising by 14.6% in the 12 months to September, compared to only 13.1% in August.

The inflation rate for this category has continued to rise for the last 14 consecutive months.

The rise in inflation was partially offset by a continued decrease in petrol and diesel fuel prices. Fuel prices increased by 26.5% in the year to September, compared to 32.1% in August.

David Bharier, head of research at the British Chambers of Commerce, said:

“Businesses will need to see a clear long-term economic plan to provide a stable environment to invest, alongside specific measures that relieve unprecedented inflationary pressures.”

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