Inflation: Milk, cheese, egg prices fall, Fuel prices go up. Know how Israel-Hamas conflict has impacted UK Inflation

The consumers got relief in the month of September with the prices of milk, cheese, and eggs falling. But the price of petrol rose by 5.1p a litre. Earlier, the Office for National Statistics warned that there may be "some disappointment" about the unchanged figure. On the other hand, the analysts expected the overall rate of inflation to fall slightly. But contrary to assumptions, the UK's overall rate of inflation held steady at 6.7%.

Rishi Sunak's promise

UK Prime Minister Rishi Sunak has said that reducing inflation to around 5.3% by the end of the year continues to be his "number one priority". Bank of England Governor Andrew Bailey has hinted that the bank interest rate may go further up as he said that further decisions might be tight.

Fuel prices up

Fuel prices have gone up in the wake of the Israel-Hamas conflict, indicating once again how volatile and tricky inflation can be. Besides, Saudi Arabia and Russia slashed their production. Consequently, petrol prices went up to an average of 153.6p per litre and diesel by 6.3p to 157.4p per litre. But it is still below the level seen last year.

Food price inflation eases

While food price inflation remains high at 12.2% on an annual basis, it has been easing. The food price inflation is easing and it fell by 0.1% between August and September, led by dairy produce and soft drinks. But frozen prawns became the only food item to be costlier.

Energy price cap

Economists believe that the new energy price cap beginning October 1 could cut inflation by at least one percentage point next month. The price cap ha put a limit on what suppliers can charge households per unit of gas and electricity.

FAQs:

Why have the prices of petrol and diesel gone up?
Fuel prices have gone up in the wake of the Israel-Gaza conflict, indicating once again how volatile and tricky inflation can be. Besides, Saudi Arabia and Russia slashed their production.

How the food price inflation has eased?
The food price inflation is easing and it fell by 0.1% between August and September, led by dairy produce and soft drinks. But frozen prawns became the only food item to be costlier.