Food Prices Drop For First Time in Two Years, But Fuel Costs Soar
Food Prices Fall, But Inflation Stays Stuck
September brought some good news at the supermarket as food prices dipped for the first time in two years. The Office for National Statistics (ONS) revealed that staples like milk, cheese, and eggs got cheaper, giving shoppers a much-needed breather from rising costs.
But drivers didn’t get off so lightly. Petrol prices jumped by 5.1p per litre, pushing fuel costs higher and keeping the overall inflation rate steady at 6.7%. This mixed picture means Brits are still feeling the pinch, despite cheaper food.
Inflation Disappointment Despite Early Hopes
Economists hoped inflation might finally ease, but the rate hasn’t budged, sparking some disappointment. Grant Fitzner, the ONS’s chief economist, said many European countries have seen stubborn inflation before it finally drops. He reminded us that the UK has seen significant falls in headline inflation over the past six months, so relief might still be on the horizon.
Whitbread Profits Soar as Brits Flock to Premier Inn
Running a hotel appears to be the ticket to success right now. Whitbread, owners of Premier Inn and the 1 restaurant chain, announced a whopping 44% jump in half-year profit. Thanks to strong demand from repeat visitors and steady spending, their shares shot up 3.5% to 3,437p, leading London’s blue-chip index.
CEO Dominic Paul said, “We’re not seeing any customer pushback on higher prices. Leisure and business demand remain stable, and forward bookings are up on last year.” The recovery in international travel, aided by a stronger pound and eased pandemic restrictions, is pushing travellers to trusted hotel brands like Whitbread.
EU Court Backs Alitalia Over Pandemic State Aid
In a blow to rival airline 1, the European Union court ruled that the state aid Alitalia received during the Covid-19 crisis was legal under EU rules. The aid came as air travel was suspended, and the decision clears the way for continued support of national carriers amid pandemic fallout.
