Food price rises slow as UK inflation remains at 3.8%

Food and drinks prices in the United Kingdom are at their lowest rate in more than a year, according to the government's third month in a row, while overall inflation remains unchanged. In September, the first drop since May 2024, the cost of food and non-alcoholic beverages fell marginally month on month. Increased sales and discounting by stores, according to the ONS, his was likely to have been boosted. All items' inflation rate remained stable at a lower-than-expected 3. Official estimates indicate that the year-to-date figure stood at 8% in the year to September. Chancellor Rachel Reeves said she was not happy with the figures on inflation, while shadow chancellor Mel Stride said it was "pushing up the cost of living.

The food and non-alcoholic beverages inflation rate was down to 4. 4 percent. Year-to-date, the year's figure has increased from 5. 1% in the year to August. This means that grocery and non-alcoholic beverages are still going up, but more slowly than before. However, the cost of food and non-alcoholic beverages dropped by 0. 01 percent between August and September this year. 2% was the first downturn in 16 months. The decline was largely triggered by slightly cheaper vegetables, milk, cheese, eggs, bread and cereals, fish, mineral waters, soft drinks, and juices. However, the cost of specific items, such as red meat and chocolate, was also increasing. Kayleigh Brannan, a mother to baby Hadley, told the BBC that the price of meat had risen in particular, and that although Hadley has begun eating solid foods, she expects her spending will increase.

It's not bad at the moment, but the prices are going up,

she said. The maternity pay is not sufficient, she continued. You've still got the same bills, and you've also got to pay the mortgage. Obviously you have more pressure now.

Britain's inflation rate was also 3. According to the ONS, August and August saw 8%, much higher than the Bank of England's 2% target. However, the central bank's economists expected inflation to rise to 4% in September.

The biggest jumpers came from petrol prices and airfares,

ONS Chief economist Grant Fitzner said, although the decrease in prices eased in comparison to last year.

These were offset by lower rates for a variety of recreational and cultural products, as well as live events,

he said.

Mr Fitzner told BBC Radio 4's Today show that food prices were still running very high at 4. 4 percent.The fact that we've seen the steady rise in the dip a little is encouraging,says the 5%.It's just one month's figures, so we'll have to see what happens in future months, but there is still a tiny slive of hope,

he said. Although food price inflation could rise higher, Paul Dales, chief UK economist for Capital Economics, said

this will certainly be the highest in inflation. The declining rate of food and drink inflation

aligns with our expectations that food inflation will slow,

according to James Walton, chief economist at the Institute of Grocery Distribution. We may have seen the peak.

Whilst this is good news, retailers' rates are still rising year on year, but more slowly,

he said. Mr Walton said that red meat, coffee, and chocolate are also seeing significant price increases, owing to manufacturing challenges, such as bad weather.

Staples such as vegetables, milk, cheese, and bread were all pared back a touch,

Danni Hewson, AJ Bell's head of financial analysis, said, although such small changes won't make a big difference to the overall bill when people reach supermarket checkouts. The figures were unlikely to raise consumer spirits, according to Dr. Kris Hamer, the British Retail Consortium's director of insight, as the cost of a weekly grocery store was still significantly higher than last year.However, consumers would have been delighted to see the price of key staples such as rice, bread, and cereal plummet on the month," he said.

The chancellor said she was not happy with these figures.Our economy has been stagnant for far too long, with people feeling like they are putting in more and getting less out,

Reeves said. She continued to insist that the government will continue to help people

struggling with higher bills and the cost of living,

continue to grow, and that working people are rewarded.

In a column on X, the shadow chancellor said that inflation running at nearly double the Bank of England's target was

pushing up the cost of living and punishing those Labour promised to protect. Stride said that national insurance increases, government borrowing, and not having

the backbone to reduce spending" all contributed to inflation. The overall inflation rate for September is higher than that for other months. That's because the government usually uses this as a benchmark for the benefits uprating in April. It means millions of people who depend on welfare are expected to see a 3. 8% increase in their payments next year. Since the annual increase for that is determined by the so-called triple lock, the state pension will rise by more. This guarantees that the state pension will increase each year in accordance with either inflation, wage increases, or 2. 5% - whichever is the highest. September's inflation figure of 3. 8% is below average earnings for the time being (4. (8%), implying that the increase in wages would determine the state pension increase. According to the ONS, the inflation figures for the last three months were the joint-highest since January 2024, when the rate was 4%. Inflation in the United Kingdom remains at a much lower rate than the 11. In October 2022, the highest rate in 40 years, the 1% figure reached.