Official figures have revealed that food prices experienced their first monthly decline in two years in September, offering some relief to consumers. However, fuel prices saw a significant increase, contributing to the overall rate of inflation remaining steady at 6.7%. The Office for National Statistics (ONS) reported that the price of milk, cheese, and eggs decreased, alleviating pressure at supermarket checkouts. Conversely, petrol prices rose by 5.1p per litre, impacting drivers at the pumps.
Analysts had anticipated a slight decrease in the overall rate of inflation, and the unchanged figure may cause some disappointment. Grant Fitzner, the chief economist at the ONS, acknowledged this sentiment but highlighted that many European countries have experienced periods of no change or even increases in the headline rate before witnessing a decline. Fitzner added that significant falls in headline inflation have occurred over the past six months.
Meanwhile Whitbread, the parent company of Premier Inn hotels and restaurants, reported a 44% rise in half-year profit. The company’s success was attributed to strong demand for its hotel services and resilient consumer spending at its restaurants. Whitbread’s shares rose by 3.5% to 3,437 pence, leading London’s blue-chip index. CEO Dominic Paul stated that the company was not facing issues with customers due to higher prices, and a majority of its customers in the first half were repeat visitors. Paul also noted that leisure and business demand showed signs of stability, with forward-booked revenue surpassing last year’s figures. The recovery of international travel, boosted by the easing of pandemic restrictions and a strong pound, has prompted travellers to opt for established hotel chains like Whitbread.
In other news, the European Union (EU) court ruled that the state aid received by Alitalia during the COVID-19 pandemic, which resulted in a suspension of air travel, was compatible with the EU’s internal market. This decision signifies a loss for rival airline Ryanair, which had challenged the aid provided to Alitalia.
