UK Inflation Sticks at 40-Year High Despite Drop in Food Prices

UK inflation stuck at 6.7% in September, higher than forecast and failing to fall as expected. Food prices dropped but fuel costs rose.

UK has highest inflation of any G7 country. Economists blame COVID-19, Ukraine war, Brexit and energy price cap.

Fall in food inflation led by drops in milk, cheese, eggs and soft drinks. But fuel prices pushed inflation up.

Bank of England now expected to hold interest rates in November, after inflation didn't fall as predicted. Rates currently at 5.25%.

Inflation likely to drop sharply in October when energy bill cap falls. But oil price rises a risk to outlook.