Not too scary
The Bank of England reported that September’s CPI inflation figure was 2.4%, down from 2.7% last month. This is the largest monthly fall in the past 6 months, however this figure is still above the Bank of England’s target rate of 2.0%. This figure wasn’t as high as many were fearing, saving the shocks for the Halloween costumes and fireworks which will soon be upon us.
Lengthy negotiations are going on up and down the country over what children get to wear and consume this Halloween.
If parents are looking to kit out their children in Halloween gear, it’s worth noting that whilst footwear overall is falling in price, this isn’t the same for children’s shoes which are up 3%.
The cost of raising children continues to stand out in the inflation statistics, with education still sit above CPI at 3.1% and “articles for babies” – think prams and car seats – up 7.5% over last year.
However there could be some ‘sweet’ relief as parents stock up for eager ‘trick or treaters’ - chocolate prices are 0.7% down from where they were last year.
Travel woes continue
Whilst the increase in transport prices has slowed compared to August, one cause of the fall in the overall headline figure since last month, it should still be mentioned that transport services are up 4.2% year on year. The key drivers of this are air fares which are up 5.6%, bus/coach trips are 5.6% more expensive and train tickets have increased by 5.3% year on year.
Want to know more? Read our previous Inflation Bulletins