Inflation dips to 2.3%: ONS

CPI inflation rose to 2.7% in August and remained at 2.4% for the following two months.

CPIH inflation, which is now used as its headline measure and which includes owner occupiers’ housing costs, remained unchanged at 2.2%.

The largest downward contributions to CPI came from falls in petrol prices and across a variety of recreational and cultural goods and services.

These downward effects were partially offset by increased tobacco prices.

Alistair Wilson, head of retail platform strategy at Zurich, commented: “Lower inflation might bring some temporary Christmas cheer to the High Street but there is little to be jolly about.

"Renewed pressure on the pound caused by Brexit uncertainty is likely to keep inflation above the Bank of England’s target, limiting the upside potential for any real increase in income and household spending."

Kate Smith, head of Pensions, added: “After remaining unchanged for the previous two months, the drop in the inflation rate to 2.3%, the lowest for the year, means we are edging closer to the Bank of England’s target of 2%. With inflation falling and the annual nominal wage growth rising to 3.3% for the three months to October, households will begin to feel an ease in the cost of living, a welcomed festive bonus at this time of year where disposable incomes are at their most stretched."