Inflation On Target At 2.5%

Inflation has hit the Government’s target level of 2.5% for the second month running, according to the Office for National Statistics, which uses figures excluding mortgage payments and interest rates.

The Retail Prices Index for September was announced this morning as 161.8, a 0.4% increase on last month and a 3.2% increase on September 1997.

The news will increase pressure on the Bank of England to cut interest rates again next month following last week’s 0.25% reduction (see Interest Rates Cut By 0.25%).