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Mr Fitzner also told the BBC’s Today programme on Wednesday that “under the bonnet” price rises remained under control, with services inflation down in July and food prices unchanged. <\/p>\n
“This still suggests that inflation pressures at least in the short run are fairly moderate,” he said.<\/p>\n
According to the Institute for Fiscal Studies think tank, food and drink prices surged by 28.4% between September 2021 and September 2023.<\/p>\n
Its latest analysis suggested that less well-off households saw their food bill rise by far more than those with higher incomes, as the sharpest price increases had been applied to cheaper brands.<\/p>\n
But in July, food price inflation had settled down to just 1.5%, according to the ONS.<\/p>\n
Darren Jones, chief secretary to the Treasury, said that the new Labour government is “under no illusion” about the challenges still facing households.<\/p>\n
But shadow chancellor Jeremy Hunt said that the new figures show that there is “more to be done to keep inflation down”. <\/p>\n<\/div>\n<\/div>\n
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The prospect that further falls in interest rates will reduce the cost of borrowing could create a pick-up in activity in the housing market.<\/p>\n
Separate figures published by the ONS on Wednesday show that house prices have been rising, although the data pre-dates August\u2019s cut in interest rates.<\/p>\n
UK property prices rose by 2.7% in the year to the end of June, the ONS said.<\/p>\n
In England, an increase of 2.4% pushed the average house price above \u00a3300,000.<\/p>\n
The increase of \u00a37,000 in the year meant the cost of an average home in England stood at \u00a3305,000, compared with \u00a3216,000 in Wales, \u00a3192,000 in Scotland, and \u00a3185,000 in Northern Ireland.<\/p>\n<\/div>\n<\/div>\n
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