Global Inflation Trends: A September Overview

UK inflation remained steady at 6.7% in September, in line with expectations and unchanged from the previous month. The largest downward contributions came from food and non-alcoholic beverages, while rising fuel prices made the largest upward contribution. The Bank of England recently paused its interest rate hikes after 14 consecutive increases, and the market is pricing a 77% chance of rates remaining steady at the next meeting. Economists suggest that the slow path towards the Bank's 2% inflation target is unlikely to accelerate soon, and policymakers may need to consider further rate rises.