Inflation dropped to 3.2% last month as petrol prices fell, the Office of National Statistics said today.

The Retail Prices Index (RPI) measure of inflation, which includes housing costs, fell from 3.3% to 3.2% in the 12 months to September.

Meanwhile the Consumer Prices Index (CPI) measure of inflation, which doesn't include housing costs, remained unchanged last month at 2.7%.

The figures will be disappointing for policymakers, who are hoping to see the CPI measure start to drop towards the Bank of England's annual rate target of 2%.

Petrol prices fell 0.2% over the month, or 0.5p per litre, to stand at £1.37 a litre. This compares with a 2.7% rise for the same period in 2012.

However, a usual decline in air fares at this time of year was smaller than normal for long-haul and European flights, while domestic flight prices rose.

Food inflation stood at around 4.8%, still well ahead of wage increases but little changed on last month.

Elsewhere, education inflation reached an all-time high of 21.4% since records began in January 1997, as new rates for evening classes and private schools added to the ongoing impact of university tuition fees.

Martin Lewis
Get Our Free Money Tips Email!
On Our Forums

Inflation falls