The UK rate of inflation remained at 6.7% in the year to September, according to official figures.

We'll unpick the figures here and bring you the latest comment and expert analysis.

The Office for National Statistics will release the inflation rate for the year to September at 07:00 so stay with us.

Dearbail Jordan
Business reporter

Yes, it's finally happened.

In fact, the rate of pay growth, at 7.8% between June and August, overtook the rate of price rises for the first time in almost two years.

While it is good news, it doesn’t necessarily mean we’re all suddenly rolling in cash.

That 7.8% increase is an average - some people will have seen their wages rise by more, some by less.

There also remains a sizable gap between the average pay growth for public sector workers versus those in the private sector.

Inflation measures how quickly the prices of goods and services are rising (or, very occasionally, falling).

Soaring food and energy bills have been pushing prices up.

Although wholesale gas prices have come down very sharply since last year, they are still much higher than before the Covid pandemic and Russia’s war in Ukraine, helping to push up the cost of living.

The soaring cost of energy has been a key factor driving the UK’s high inflation rate in recent months. Oil and gas were in greater demand as life got back to normal after Covid. At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.

Kevin Peachey
Cost of living correspondent

If we get confirmation of a fall in inflation shortly, particularly if that is coupled with a drop in so-called core inflation (which strips out volatile factors such as food and energy), policymakers at the Bank of England might be given confidence to hold interest rates at 5.25%.

With the UK economy barely growing, that would be welcome news for businesses, as well as consumers who have been hit hard by rising borrowing costs and will hope rates have peaked.

But it remains a delicate balance, especially if the inflation rate remains stuck, stubbornly high, or even starts to go up again.

Remember, the target rate is 2%.The committee that sets interest rates next meets at the start of November. Today might signal, but won’t settle, the decision they make in a couple of weeks’ time

The inflation figure is presented as a percentage. It tells us how fast prices for goods and services are rising in the UK.

Inflation in August dropped to 6.7%,down from 6.8% in July. It had been as high as 10.4% in February and 11.1% last October.

The recent drop doesn’t mean that prices are dropping - just that they’re rising less fast than before.

Economists are predicting the latest figure could show no change or a slow to 6.6% or 6.5% in September.

Image source, .

Dearbail Jordan
Business reporter

Thanks for joining us as we wait for the latest inflation figure, which measures the pace at which prices are rising.

It will be announced at 07:00 and some economists expect it to have slowed slightly for the year to September - down from 6.7% for August - while others think it will stay roughly the same.

Inflation is a very important figure. It guides the Bank of England on whether to raise, hold or cut interest rates - affecting your monthly mortgage payments.

It is also used to help set some benefits and can determine state pension payments.

So, stay with us as we dissect what the new inflation rate means for you.