British inflation jumps to five-year peak in September

The NBS in the Consumer Price Index (CPI) report released on Tuesday measures indicates that the inflation rate dropped year-on-year from 16.01 per cent in August to 15.98 per cent in September.

The national bureau in its report said, "Consumer Price Index, which measures inflation, increased by 15.98 per cent (year-on-year) in September 2017".

The report, titled CPI and Inflation Report, also shows that the headline index increased by 0.78 per cent in September, 0.19 per cent lower than the 0.97 per cent recorded in August.

The September reading was in line with market expectations.

Food price pressure continued into September as all major food sub-indexes increased.

The UK Office for National Statistics has reported a surge in the nation's inflation rate amid ongoing Brexit talks with European Union to determine the terms of the country's exit from the bloc and a weak pound.

Laith Khalaf, senior analyst at Hargreaves Lansdown, says: "The pound in your pocket is depreciating, as the rising price of goods continues to chip away at its value. These effects were partly offset by clothing prices that rose less strongly than this time previous year".

It is the eighth consecutive time the country's inflation rate is dropping this year. "Britain desperately needs a pay rise".

"This wouldn't be the first time the bank has talked the talk without walking the walk however, so it's probably best not to count those chickens until they're hatched".

Yes, "price stability" is the main goal of the Bank of England's monetary policy committee which makes the decision. "Inflation should fall back next year, as the effect of sterling devaluation begins to ease".

But the pound, trading at just under $1.32 against the USA dollar, slipped back a little, as some economists said there would need to be stronger signs of wage growth if the Bank wants to go for another increase in the new year.

Pensioners will be celebrating again.

Those on the new state pension will see their weekly income rise to £164.

Actual rentals for housing rose 0.6% in the quarter and were up 2.2% on the year.

Food for thought for the chancellor, perhaps, who's reported to be considering tax concessions for younger people in his forthcoming budget, to even-up the inter-generational unfairness that the triple lock has contributed to.

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