Inflation figures for September today showed a slight dip in the annual rate to 3.1%, but the performance is unlikely to dampen market expectations that the Bank of England will hike interest rates later this year.
Annual inflation fell back due to the unwinding effect of last year's Eat Out to Help Out scheme, which was a factor in pushing up the rate to 3.2% in August. However, the cost of goods produced by factories rose, with metals and machinery showing a notable rise.
Economists expect a surge in the annual rate for October as the recent increase in the Ofgem energy price cap will be included in the calculations.
