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UK inflation holds at 6.7% in September, defying hopes of a fall

UK inflation remains sticky, underpinned by rising petrol prices. The Bank’s preferred core measure dipped marginally to 6.1% but also topped forecasts.

18 October 2023

Despite falls in food and drink prices over the month, UK inflation remained at 6.7% in September on a year-on year-basis, the same as the previous month. This was ahead of market forecasts, and it was all down to rising petrol costs. While the Bank of England (BoE) prefer to use core inflation measures when assessing the need for further rate hikes - which excludes the inherent volatility in fuel prices - the core measure surprised marginally, also coming in at 6.1%, ahead of expectation of a 6.0% rise but down from the 6.2% level seen the previous month. However, disappointing as it was, this inflation print is probably not enough for the BoE to go more restrictive in a little over two weeks’ time.

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Charles Hepworth

Investment Director
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