According to official estimates, the unexpected downturn was primarily caused by lower gasoline and travel prices.
As a result, inflation—the rate at which prices increase over time—is now below the Bank of England’s 2% target, opening the door for additional interest rate cuts the following month.
September’s number is typically used to determine how much various benefits will increase in April of the following year.
The largest of these is Universal Credit, which is increased at the discretion of ministers.
All of the primary disability benefits, including the personal independence payment, disability living allowance, attendance allowance, and carer’s allowance, are legally increased by at least the rate of inflation in September.
However, a 1.7% benefit increase would fall short of the 4.1% state pension increase anticipated in April, which is based on the so-called triple lock.
In September, fuel and diesel prices were 10.4% lower than they were a year earlier, according to the Office for National Statistics (ONS).
The price of long-haul, domestic, and European airline tickets also contributed to the decline in inflation. After the summer rush, fares usually decline, but this time they dropped more than usual.
