Inflation Up as Eat Out to Help Out Ends and Transport Prices Surge
- UK inflation increased to 0.5% in September after the end of EOTHO scheme
- Transport prices contributed to the increase for the first time since March
- Second-hand car prices rose due to increased demand for private transport
- Business rates are expected to rise by £159.42m next year in England
- Retail sector will shoulder £50.12m of the increase
The UK’s inflation rate increased to 0.5% in September following the conclusion of the Government’s Eat Out to Help Out (EOTHO) scheme, according to the Office for National Statistics (ONS). In August, prices were driven down by the discount program. The downward contribution from restaurants and hotels fell to 0.07 percentage points in September, compared to 0.27 in August. Transport prices also contributed positively for the first time since March due to a rise in second-hand car prices, potentially caused by increased demand as people seek alternative transportation options. Airfares and personal transport equipment (including fuels and lubricants) also saw reductions in downward contributions. Average petrol prices were 113.3 pence per liter in September, up from 113.1 pence in August but still below the 2019 level of 127.3 pence. The inflation rate could impact business rates for the upcoming financial year (2021/22), with Altus Group forecasting a £159.42 million increase in England, with £50.12 million borne by the retail sector. Robert Hayton, head of UK business rates at Altus Group, stated that the government has an opportunity to prove its system is in sync with reality and provide targeted support to affected industries.
Factuality Level: 8
Factuality Justification: The article provides accurate information about UK inflation for September, citing sources such as the ONS and Altus Group, and explains the factors contributing to the increase. It also discusses the potential impact on business rates for the upcoming financial year. While it does include some contextual information, it is mostly focused on the main topic and presents facts without any significant issues.
Noise Level: 3
Noise Justification: The article provides relevant information about UK inflation rates and their contributing factors, as well as the potential impact on business rates for the upcoming year. It also includes insights from an expert in the field. However, it could benefit from more analysis or context to provide a deeper understanding of the implications of these changes.
Financial Relevance: Yes
Financial Markets Impacted: UK inflation rate, restaurants and hotels industry, transport sector, retail sector
Financial Rating Justification: The article discusses the impact of the Eat Out to Help Out scheme on UK inflation rates and how it affects various industries such as restaurants, hotels, transport, and the retail sector. It also mentions the potential increase in business rates for the upcoming financial year.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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