UK Inflation Falls Below 2% for First Time Since 2021
- UK inflation drops to 1.7%, falling below the government target of 2%
- Lower airfares and petrol prices contribute to the decline
- Food price inflation rises for the first time in over a year
The UK's inflation rate has dropped below the government’s 2% target for the first time since 2021, according to the latest figures from the Office of National Statistics (ONS). In September 2024, the Consumer Price Index (CPI) rose by 1.7%, down from 2.2% in August.
ONS Chief Economist Grant Fitzner noted that lower airfares and petrol prices played a significant role in the decrease, although these gains were partly offset by rising food prices for the first time in over a year. Fitzner also mentioned that businesses benefited from falling raw material costs, driven by lower crude oil prices.
Tom Church, Co-Founder of LatestDeals.co.uk, said: “This drop in inflation is a relief for many, especially mortgage holders facing rising rates. Lower prices in key areas offer some breathing space.
I’m pleased to hear inflation is dropping at last. Falling inflation doesn't mean things are getting cheaper - only that prices are going up more slowly.
Pjran Also it depends on what has lower inflation, there was a news report that holiday prices were reducing because as we get poorer less people are taking foreign holidays so its getting more competitive but many poor people at the bottom can't afford foreign holidays. Many poorer people are focused on housing, energy and food costs which all still seem to be increasing more quickly. I was amazed recently how much renting property is now. Well over £1000 for a niceish house in my area. Even a couple renting together on low wages close to the minimum wage would struggle with that with all their other expenses. It would seem impossible to me to save for a mortgage in that situation.