“The return to double-digit inflation underscores the devastating financial squeeze facing households and businesses.
“September’s uptick should be followed by a notable leap in inflation in October as energy bill increases push inflation to around 11%, albeit lower than it would have been without the Energy Price Guarantee.
“The Chancellor’s decision to scale back energy support from April 2023 risks fuelling a renewed inflationary spike, which may deepen the recession by further eroding incomes and forcing more aggressive interest rate rises.”
On the impact of September’s CPI inflation rate on firms' business rates bills in the next financial year, Suren added:
“Many firms are facing eye-watering tax rises next April as business rates rise with September’s CPI inflation, aggravating already diminished cashflows. This is particularly acute for those in retail, leisure, and hospitality, whose temporary 50% rates relief expires in the same month.”