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UK inflation hits 4% in September, highest in 21 months, due to new 20% VAT on key goods and services.
UK inflation is projected to rise to 4% in September, the highest in 21 months and since January 2024, driven by higher food, fuel, air fares, clothing, and private school fees due to a new 20% VAT rate.
Economists debate whether this marks a peak, with forecasts ranging from a slight drop to 3.8% by year-end or a peak at 3.9%.
The data will influence benefit and pension adjustments under the Triple Lock, tax policy, and fiscal planning ahead of the autumn Budget, while also affecting the Bank of England’s approach to interest rate cuts.
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La inflación del Reino Unido alcanza el 4% en septiembre, el nivel más alto en 21 meses, debido al nuevo IVA del 20% sobre los bienes y servicios clave.