Britain's Consumer Prices Index (CPI) rose by 3.1 percent in the 12 months to September, down from 3.2 percent in August, the British Office for National Statistics (ONS) said Wednesday.
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Despite a slight dip, the reading of 3.1 percent in September remained far higher than the Bank of England (BoE)'s 2 percent target for inflations.
The large downward contribution to change from restaurants and hotels is "a base effect", partly due to the recovery of restaurant and cafe prices in September 2020 following August's Eat Out to Help Out scheme, said the ONS.
"Annual inflation fell back a little in September due to the unwinding effect of last year's 'Eat Out to Help Out', which was a factor in pushing up the rate in August," said Mike Hardie, head of prices at the ONS.
"However, this was partially offset by most other categories, including price rises for furniture and household goods and food prices falling more slowly than this time last year," Hardie added.
Hardie noted that the costs of goods produced by factories rose again, with metals and machinery showing a notable price soar. "Road freight costs for UK businesses also continued to rise across the summer."
British independent economist Julian Jessop said the small dip in September is good news and probably a relief to the BoE and the British Chancellor of the Exchequer Rishi Sunak. "But (it) doesn't change the big picture: inflation still likely to be well above 4 percent by year end."
Martin Sartorius, principal economist at the Confederation of British Industry (CBI), said the CPI inflation slowed slightly in September but "remains relatively quick", as the minor deceleration was driven by base effects of the unwinding of Eat Out to Help Out last year.
"Inflation is set to pick up again in October following the increase in the energy price cap," Sartorius added.
The latest data came as Britain has lifted most COVID restrictions thanks to the progress of its vaccine rollout.
Britain reported another 223 coronavirus related deaths, the highest number of fatalities recorded in one day since 231 were recorded on March 9, according to official figures released Tuesday.
Around 86 percent of people aged 12 and over in Britain have had their first dose of vaccine and more than 78 percent have received both doses, the latest figures showed. ■