Inflation in UK down to 3-year low

Inflation in the UK fell to its lowest level for nearly three years last month, but energy price hikes are expected to put household finances under pressure once more, it was announced here Tuesday. The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) fell to 2.2 percent in September, down from 2.5 percent in August and the lowest level since November 2009. While CPI is now less than half the 5.2 percent seen a year earlier, gas and electricity rises are expected to push it higher after four of the "big six" energy firms announced price rises, analysts said. The ONS said the recent spate of energy bill increases would likely lead to similar increases in inflation as seen last year, when utility price increases added 0.45 percent to CPI. Rising fuel prices also put upward pressure on CPI last month, when petrol rose by 3.9p a litre between August and September compared with a fall of 0.3p a year ago, according to the ONS. Experts fear rising food prices will also push inflation back up. The Treasury said September's fall would bring "welcome relief to the budgets of families and businesses".