Katherine Heffernan | 20 Oct 2021

Base effects continue to complicate inflation picture

The latest inflation figures show a slight dip in the headline measures for the CPIH and CPI: these indices rose by 2.9% and 3.1% respectively for the year to September, down from 3.0% and 3.2% last month. The largest downward contribution to the change in the rate came from restaurants and hotels, where prices returned to normal levels in September last year following widespread discounts during August 2020’s ‘Eat Out to Help Out’ scheme, but no equivalent promotion took place this year. This large downward contribution was partially offset by upward contributions in most other areas, notably transport, furniture and household goods, food and non-alcoholic beverages, and housing and household services.

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