Inflation falls to lowest level in over three years

The rate of inflation stood at 1.7% in the 12 months to September – a healthy fall from 2.2% in August, according to new figures from the Office for National Statistics (ONS) released this morning.

Inflation is now at its lowest point since April 2021 – and is comfortably below the Bank of England’s target of 2%.

The cost of raw materials fell 2.3% in the year to September 2024, down from a revised decrease of 1.0% in the year to August.

Meanwhile, factory gate prices fell 0.7% in the year to September, down from a revised rise of 0.3% in the year to August.

ONS Chief Economist Grant Fitzner said: “Inflation eased in September to its lowest annual rate in over three years. Lower airfares and petrol prices were the biggest driver for this month’s fall.

“These were partially offset by increases for food and non-alcoholic drinks, the first time that food price inflation has strengthened since early last year.

“Meanwhile, the cost of raw materials for businesses fell again, driven lower crude oil prices.”