Most Important Inflation Month September Up 0.5%

Published / Last Updated on 21/10/2020

The Consumer Prices Index (CPI) was up 0.5%pa in September 2020 which is up from 0.2%pa in August.

The Consumer Prices Index including owner occupier’s housing costs (CPIH) 12-month inflation rate rose in September 2020 to 0.7%pa and is up from 0.5%pa in August 2020.

September’s largest contributor was recreation and culture (0.31 percentage points).

The largest upward contributors were transport costs and restaurant and café prices (following the end of the Eat Out to Help Out Scheme) of 0.23 and 0.21 percentage points.

This was partially offset by smaller downward contributors from household equipment and maintenance, furniture, games, toys and hobbies, food, and non-alcoholic beverages.

In September the number of CPIH items that were unavailable to UK consumers remained at 8 from August, 1 item was introduced, but due to updated travel restrictions another item is no longer available and is detailed in Table 58 of the Consumer price inflation dataset.

These made a small upward contribution of 0.01 percentage points and accounted for 1.1% of the CPIH basket by weight.  We have collected a weighted total of 90.2% of comparable coverage collected previously (excluding unavailable items).


This is the most important inflation month as it sets the rate of increases for state benefits, pension allowances, pension payment increases and many more. 

It is does set the increase rate currently for state pensions that have the 'triple lock' of the higher of 2.5%pa, CPI inflation (0.5%pa) and Average Earnings Inflation (May-July was negative at -1.05%).  Therefore, state pensions should increase by 2.5% in April 2021 unless the government removes the triple lock.

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