{"id":266810,"date":"2025-11-16T23:01:10","date_gmt":"2025-11-16T23:01:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/266810\/"},"modified":"2025-11-16T23:01:10","modified_gmt":"2025-11-16T23:01:10","slug":"price-rises-set-to-ease-in-reprieve-for-households","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/266810\/","title":{"rendered":"Price rises set to ease in reprieve for households"},"content":{"rendered":"

UK inflation appears to have reached its zenith at 3.8 per cent in September 1, with analysts expecting a decline when October’s Consumer Prices Index data is released on Wednesday.<\/p>\n

The September rate matched July and August, according to the Office for National Statistics (ONS). <\/p>\n

Multiple economists anticipate the October reading will show a fall to around 3.5 per cent, marking the first decline after months of elevated price pressures. <\/p>\n

The Bank of England said last week that inflation has “peaked” and is expected to start easing.<\/p>\n

Jack Meaning, chief UK economist for Barclays, said September “represented the peak of the inflation hump” and forecast the CPI rate would fall to 3.5 per cent in October. <\/p>\n

Economists Robert Wood and Elliott Jordan-Doak at Pantheon Macroeconomics share this prediction, while Deutsche Bank chief UK economist Sanjay Raja expects a slightly smaller decrease to 3.7 per cent.<\/p>\n

British households are seeing tentative signs of relief as food prices have recorded their first monthly decrease since May last year. <\/p>\n

Costs for food and non-alcoholic drinks fell between August and September, following sharp rises driven by items such as chocolate, coffee, cheese and eggs earlier in the year.<\/p>\n

\"Supermarket<\/p>\n

Prices are set to cool in a boost for consumers<\/p>\n

| <\/p>\n

GETTY<\/p>\n

Energy bills are also expected to play a major role in pushing down the overall inflation reading.<\/p>\n

While Ofgem raised the energy price cap by two per cent in October, this compares with a 9.6 per cent rise in the same month last year. <\/p>\n

This difference means energy price inflation will be significantly lower than in previous periods.<\/p>\n

These twin trends of easing food prices and reduced upward pressure from energy bills are expected to help moderate household costs after a prolonged period of persistent rises. <\/p>\n

Analysts expect food price inflation to continue declining through October, contributing further to the anticipated reduction in the headline CPI rate when Wednesday’s figures are published.<\/p>\n

\"InflationInflation had been projected to hit four per cent in September | CHAT GPT <\/p>\n

Some economists have warned that increases in university tuition fees, particularly affecting international students, could have added some upward pressure to last month’s inflation data.<\/p>\n

Deutsche Bank’s Mr Raja is forecasting a slightly higher 3.7 per cent for October’s reading. <\/p>\n

He said the autumn Budget later this month will represent the “next most important inflation forecast update”, noting that potential tax changes could influence overall price levels.<\/p>\n

“Speculation around lower energy bills, indexation costs, duties and food prices remains rife.” <\/p>\n

He added: “We expect the Chancellor to push through some modest measures to pull down on prices come November 26.”<\/p>\n

\"Rachel<\/p>\n

Deutsche Bank warns that the Chancellor\u2019s decisions may influence price trends through 2026<\/p>\n

| GETTY<\/p>\n

According to Deutsche Bank’s analysis, decisions taken by the Chancellor could shape price movements well into 2026.<\/p>\n

Mr Raja said the Budget would provide “a good sense of where 2026 inflation will land”.<\/p>\n

Possible Government interventions could include changes to energy bill structures, adjustments to indexation mechanisms, alterations to duties and potential reforms targeting food price pressures.<\/p>\n

These fiscal tools sit alongside the Bank of England’s monetary measures, offering the Treasury additional ways to influence household costs.<\/p>\n","protected":false},"excerpt":{"rendered":"UK inflation appears to have reached its zenith at 3.8 per cent in September 1, with analysts expecting…\n","protected":false},"author":2,"featured_media":266811,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,1431,2222,50,2331,56,54,55],"class_list":{"0":"post-266810","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-inflation","11":"tag-money","12":"tag-news","13":"tag-sgg","14":"tag-uk","15":"tag-united-kingdom","16":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/266810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=266810"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/266810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/266811"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=266810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=266810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=266810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}