United Kingdom Inflation Rate

The annual inflation rate in the UK edged down to 3.1% in September of 2021 from a 9-year high of 3.2% in August and below forecasts of 3.2%. A slowdown was seen in cost of restaurants and hotels (5.1% vs 8.6% in August) amid a base effect from last year, in part because of the recovery of restaurant and cafe prices in September 2020 following August’s Eat Out to Help Out scheme. On the other hand, main upward pressure came from prices of transport (8.4% vs 7.8%); recreation and culture (2.7% vs 2.4%); housing and household services (1.9% vs 1.8%); and food and beverages (0.8% vs 0.3%). On a monthly basis, the inflation fell to 0.3% from 0.7% in August and below forecasts of 0.4%.