London, Yiannis Haniotakis

Inflation in Britain last month remained at the same level as July and August, remaining at 3.8%, according to the Office for National Statistics (ONS).

This rate is lower than the 4% that economists had forecast for September, but remains almost double the 2% target set by the Bank of England.

The ONS’s chief economist, Grant Fitzner, explained that the biggest bullish drivers came from petrol prices and air tickets, where price falls slowed compared to last year.

However, these upward trends were “offset by lower prices from the leisure and culture sectors, including live events.”

At the same time, he noted that “the cost of food and non-alcoholic beverages also fell, for the first time since May last year.”

Budget headache

Meanwhile, all eyes remain on Finance Minister Rachel Reeves as she prepares the Autumn Budget, which will be announced on November 26.

The British government’s economic staff is looking at ways to plug an expected “black hole” of between £20bn and £40bn.

The news that the inflation index has not risen will be welcome news, but it will not spare Reeves from making tough decisions.