UK inflation jumps as transport costs rise and Eat Out to Help Out ends

CPI rises to 0.5%

UK inflation rose to 0.5% in September, from 0.2% in August, after the ending of the Eat Out to Help Out scheme pushed restaurant and café prices higher, the Office for National Statistics said.

Catering services inflation jumped from -2.6% to 0.9%, putting pressure on the consumer prices index, but a bigger contributor to the overall increase came from transport costs. Airline inflation soared from -20.6% to -4.4% as prices fell by less than previous Septembers, while car price inflation improved from 5.2% to 8.9% as second-hand cars saw increased demand due to consumers relying less on public transport. Market Movers Blog: EU's first social bond offering sees €233bn of orders Petrol prices also rose, with expectations this measure will continue to tick upwards, meaning i...