Inflation remained at 6.7% in September, defying analysts’ forecasts of a 0.1% drop, and ending the three-month run of incremental decreases. The Office for National Statistics released the figures this morning, showing fuel prices have risen higher than expected, offsetting the dip in food costs. It’ll be a photo finish for Rishi to halve inflation by the end of the year…

The ‘good’ news is this is still lower than the Bank of England’s prediction of 6.9%, after August’s rate fell lower than expected. As Julian Jessop points out, this means the Bank probably shouldn’t scare itself into hiking interest rates again:

“Despite the disappointing inflation data for September, the Bank of England should now be thinking about cutting interest rates, not raising them again. The bigger than expected fall back in August means that inflation is still lower than the Bank had been forecasting. Economic growth has been weaker too…”

The government needs to get that figure below 5.4% to meet Rishi’s “halve inflation” pledge…