Prices are still rising fast. The Consumer Prices Index rose by 3.8 per cent in September – the same pace as in August but nearly double the Bank of England’s 2 per cent target. Markets, and the Bank itself, had expected inflation to reach 4 per cent, so the fact it has remained flat will come as a small relief to the Chancellor as she prepares for her November Budget.

‘Significantly,’ the ONS noted, food and drink inflation fell for the first time since March – down to 4.5 per cent from 5.1 per cent. Core inflation, which strips out volatile items, and services inflation both eased too. The Bank believes this is the peak of inflationary pressure, and if that proves true, it will be welcome news for everyone.

On the other hand, transport costs rose sharply, preventing a drop in the headl

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