According to official estimates, the unexpected downturn was primarily caused by lower gasoline and travel prices.
It indicates that inflation, or the rate at which prices increase over time, is currently below the 2% objective set by the Bank of England, opening the door for additional interest rate reductions.
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 government’s option.
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. According to the government, the yearly disability and incapacity benefits expense in the UK should be reduced.
