Rising food prices push inflation back to 10.1%
The largest upward effects came from bread and cereals, meat products, and milk, cheese and eggs
Inflation has returned to the 40-year high of 10.1% in September, up from 9.9% in August, with rising food prices as the main contributor, according to the latest figures from the Office for National Statistics (ONS).
The increase to the annual inflation rate in September 2022 reflected, principally, rising food and non-alcoholic beverage prices. There were also increases from hotel overnight stays, and from furniture and household goods. A large partially offsetting, downward effect came from the price of motor fuels in the transport section.
The ONS added that the increase in the annual rate for food and non-alcoholic beverages between August and September 2022 was driven by price movements across eight of the more detailed classes.
The largest upward effects came from bread and cereals, meat products, and milk, cheese and eggs, where prices rose between August and September 2022, but fell between the same two months in 2021.
Overall, food and non-alcoholic beverage prices rose by 14.6% in the 12 months to September 2022, up from 13.1% in August.
ONS director of Economic Statistics Darren Morgan said: “After last month’s small fall, headline inflation returned to its high seen earlier in the summer. The rise was driven by further increases across food, which saw its largest annual rise in over 40 years, while hotel prices also increased after falling this time last year.
“These rises were partially offset by continuing falls in the costs of petrol, with airline prices falling by more than usual for this time of year, and second-hand car prices also rising less steeply than the large increases seen last year.”
He added: “While still at a historically high rate, the costs facing businesses are beginning to rise more slowly, with crude oil prices actually falling in September.”
Martin Sartorious, principal economist at the CBI, said: “Inflation returned to its recent 40-year high and is expected to grow further in October as energy bills rise in line with the government’s Energy Price Guarantee. While the Chancellor’s statement on Monday seems to have restored some fiscal stability, adjustments to the Energy Price Guarantee suggest inflation may yet remain higher for longer.
“The prospect of household energy bills rising sharply again in April 2023 emphasises the need for government to set out the details of any future targeted support sooner rather than later, in addition to how the country will establish its longer-term energy security.”
