Business
Food price rises slow as UK inflation remains at 3.8%
Charlotte EdwardsBusiness reporter, BBC News
Getty ImagesFood and drinks prices in the UK are increasing at their slowest rate in more than a year, while overall inflation remains unchanged for the third month in a row.
Month-on-month, the cost of food and non-alcoholic drinks actually edged down slightly in September – the first fall since May 2024. The ONS said his was likely to have been driven by increased sales and discounting by retailers.
The UK inflation rate for all items remained stable at a lower-than-expected 3.8% in the year to September, official figures show.
Chancellor Rachel Reeves said she was “not satisfied with the numbers” on inflation, while shadow chancellor Mel Stride said it was “pushing up the cost of living”.
Elaine Doran/BBCThe inflation rate for food and non-alcoholic drinks was down to 4.5% for the year to September from 5.1% in the year to August.
This means the price shoppers pay for groceries and non-alcoholic drinks is still going up, just more slowly than before.
But between August and September this year, the cost of food and non-alcoholic drinks overall actually fell by 0.2% – the first fall for 16 months.
The drop was driven by slightly cheaper vegetables, milk, cheese and eggs, bread and cereals, fish, mineral waters, soft drinks and juices.
However, the cost of specific items such as red meat and chocolate continued to rise.
Kayleigh Brannan, a mother to baby Hadley, told the BBC she had noticed the price of meat rising in particular, and that now Hadley has started eating solid foods, she expected her expenses would be going up.
“It’s not too bad at the moment but you can see the prices going up,” she said.
She added: “The maternity pay is not enough. You’ve still got the same bills, you’ve still got to pay the mortgage… obviously you have more pressure then.”
Britain’s inflation rate was also 3.8% in July and August, according to the ONS, which is still much higher than the Bank of England’s 2% target.
However, the central bank’s economists had forecast inflation to rise to 4% in September.
ONS chief economist Grant Fitzner said: “The largest upward drivers came from petrol prices and airfares, where the fall in prices eased in comparison to last year.”
He added: “These were offset by lower prices for a range of recreational and cultural purchases including live events.”
Mr Fitzner told BBC Radio 4’s Today programme that food prices were still “running quite high at 4.5%” but added “the fact that we have seen that steady increase dip a little is encouraging.”
“It is just one month’s numbers so we will have to see what transpires in future months – but nonetheless a small glimmer of hope there,” he said.
Paul Dales, chief UK economist for Capital Economics, said while food price inflation could rise further, “this will probably be the peak in inflation”.
James Walton, chief economist at the Institute of Grocery Distribution said the declining rate of food and drink inflation “aligns with our predictions that food inflation will start to moderate, and we may have seen the peak.”
“Whilst this is good news, prices for shoppers are still going up year on year, just more slowly,” he said.
Mr Walton noted that items such as red meat, coffee and chocolate are still seeing strong price increases and linked this to issues with production, such as bad weather.
Danni Hewson, AJ Bell head of financial analysis, said: “Staples like vegetables, milk, cheese and bread were all pared back a touch, though such tiny movements won’t make a huge difference to the overall bill when people reach supermarket tills.”
Dr Kris Hamer, director of insight at the British Retail Consortium, said the figures were “unlikely to raise consumer spirits as the cost of a weekly grocery shop was still “significantly higher than last year”.
“Nonetheless, consumers will have been happy to see the price of key staples such as rice, bread and cereal fall on the month,” he said.
The chancellor said she was “not satisfied with these numbers.”
“For too long, our economy has felt stuck, with people feeling like they are putting in more and getting less out,” Reeves said.
She added that she was determined to ensure the government supports people “struggling with higher bills and the cost of living challenges, deliver economic growth and build an economy that works for, and rewards, working people.”
In a post on X, the shadow chancellor said that inflation running at nearly double the Bank of England’s target was “pushing up the cost of living and punishing those Labour promised to protect”.
Stride claimed national insurance increases, government borrowing and not having “the backbone to reduce spending” were all contributing to inflation.
The overall inflation figure for September matters more than most other months.
That’s because the government usually uses this as the benchmark for the benefits uprating in April.
It means millions of people depending on benefits are likely to see a 3.8% increase in their payments next year.
The state pension will rise by more, because the annual increase for that is determined by the so-called triple lock.
This guarantees that the state pension goes up each year in line with either inflation, wage increases or 2.5% – whichever is the highest. September’s inflation figure of 3.8% is below average earnings for the relevant period (4.8%) which means the rise in wages will decide the state pension increase.
The inflation figures for the past three months were the joint-highest recorded since January 2024, when the rate was 4%, according to the ONS.
Inflation in the UK remains well below the 11.1% figure reached in October 2022, which was the highest rate for 40 years.
Business
Middle East crisis: Jubilant FoodWorks reports some Domino’s outlets affected by LPG shortage – The Times of India
Jubilant FoodWorks Ltd (JFL), which operates Domino’s Pizza and Dunkin Donuts in India, has reported constraints in LPG cylinder supplies across parts of its store network due to the ongoing West Asia war, according to ET.In a filing to the BSE, the company said, “Operational impact at this stage is limited and being actively managed. The company is taking several steps to conserve LPG and working overtime to move to alternate energy sources like electricity and piped natural gas (PNG).”It added that it is in continuous touch with oil marketing companies to track developments and respond to the evolving situation. “The company is in constant engagement with oil marketing companies (OMCs) to remain apprised of the latest developments and plan operational responses accordingly, given the rapidly evolving nature of the situation,” the filing said.The company noted that it is closely monitoring the situation as supply disruptions persist.The impact is being felt across the restaurant industry, with several chains facing similar challenges due to LPG shortages.On March 10, the National Restaurant Association of India (NRAI) had advised its five lakh members to consider shorter operating hours, reduce items requiring long cooking times or deep frying, and adopt fuel-saving measures such as using lids while cooking, in view of supply constraints linked to the Gulf war.
Business
Russia sells reserve gold for first time in 25 years to fund Ukraine war deficit: Report – The Times of India
Russia has begun selling physical gold from its central bank reserves for the first time in 25 years, as the government seeks to plug a widening budget deficit driven by sustained military expenditure, according to a report by Berlin-based news outlet bne IntelliNews.Regulatory data show that between 2022 and 2025, Russia sold gold and foreign currency worth over RUB 15 trillion ($150 billion), followed by an additional RUB 3.5 trillion ($35 billion) in just the first two months of 2026, the report noted. In January alone, the Central Bank of Russia sold 300,000 ounces of gold, followed by another 200,000 ounces in February.The move marks a significant shift in reserve management. Earlier, gold transactions were largely notional, involving transfers between the Ministry of Finance and the central bank without physical movement of bullion. In recent months, however, the central bank has started selling actual gold bars into the market.As a result, Russia’s gold holdings have declined to 74.3 million ounces, the lowest level in four years. The disposal of 14 tonnes in January and February is the largest two-month sale since the second quarter of 2002, when 58 tonnes were offloaded in a single tranche.The sales come as Russia’s fiscal position comes under increasing strain. The government ended 2025 with a budget deficit of 2.6 per cent of GDP, compared to an initial projection of 0.5 per cent, Berlin-based bne IntelliNews report noted. Economists estimate the actual deficit could be closer to 3.4 per cent, with some payments deferred to 2026 to limit the reported gap.Pressure on the budget has intensified as oil prices weakened in the second half of the year and US sanctions tightened, reducing the contribution of oil and gas tax revenues to about 20 per cent of total revenues — roughly half of pre-war levels.The decision to sell gold has also been influenced by the sharp rise in bullion prices to above $5,000 per ounce. This surge has pushed Russia’s international reserves to over $809 billion as of February 28, including around $300 billion of assets frozen in the West, according to the Central Bank of Russia. Of this, gold reserves alone are valued at about $384 billion.Russia currently holds more than 2,000 tonnes of gold, making it the world’s fifth-largest sovereign holder, according to World Gold Council data. The country had built up these reserves over the years to reduce dependence on dollar-denominated assets, especially after sanctions imposed following the annexation of Crimea in 2014 and further tightened after the invasion of Ukraine in 2022.Since 2022, the Ministry of Finance has relied on multiple funding channels to manage budget pressures. These include drawing from the National Welfare Fund, which still holds around RUB 4 trillion, increasing issuance of domestic OFZ treasury bonds, and raising value-added tax rates, which account for about 40 per cent of government revenues.The shift to selling physical gold suggests that Russia is now tapping its liquid reserve buffers more directly, underlining the growing fiscal strain as the conflict in Ukraine continues into its fourth year.
Three-month waiver on bank guarantees, credit letters covers rice, seafood, pharmaceuticals among other commodities
Increased sourcing from the US reduces reliance on the Strait of Hormuz — a narrow maritime corridor through which a substantial proportion of global oil trade passes and which remains vulnerable to geopolitical tensions. Photo: Reuters
ISLAMABAD:
The Ministry of Commerce has approved a temporary exemption from financial instruments, including bank guarantees and letters of credit, for exports to Iran, the Central Asian Republics and Azerbaijan via Iran’s land route, it emerged on Saturday.
The development arose from a March 24 notification by the Ministry of Commerce received by The Express Tribune.
The exemption, issued under the Import and Export Control Act 1950, waived the requirement under Paragraph 3 of the Export Policy Order 2022, which mandates that all exports from Pakistan be made in compliance with Foreign Exchange Rules, regulations, and procedures notified by the State Bank of Pakistan (SBP).
The concession will remain effective for three months, from March 24 to June 21. The ministry stated that the federal government had taken the step to facilitate exporters and enhance regional trade.
Read: Local exports hit by ‘triple threat’
Under the exemption, rice may be exported to the Central Asian Republics and Azerbaijan through Iran’s land route. Exports of the following commodities to Iran via land route were also permitted: rice (milled), seafood, potatoes, meat, onions, maize, citrus, banana, tomato, frozen chicken, pharmaceuticals and tents.
However, the exemption from financial instruments, according to the notification, would be subject to the submission of an undertaking by the exporter that the export proceeds would be submitted within the stipulated time period.
Commerce Minister Jam Kamal Khan said Pakistan would now be able to export rice to Central Asia and Azerbaijan via Iran, adding that removing barriers to pharmaceutical exports was the government’s top priority.
He added that trade through Iran would significantly reduce exporters’ costs and time, and that increasing exports would steer the country towards economic stability.
Read More: Attack on Iran jolts Pakistan’s economy
The Ministry of Commerce said it was utilising all resources to enhance regional connectivity and increase trade volume, adding that the measure would strengthen trade links in the region.
A week ago, Pakistan’s Ambassador to Iran, Mudassir Tipu, said bilateral and transit trade between the two countries remained operational despite ongoing regional tensions.
The envoy expressed gratitude to the Iranian government for extending “full facilitation” to Pakistan’s trade, including transit trade through Iran during “challenging times”.
He added that land border crossings between Pakistan and Iran were functioning “optimally”, with green channels at multiple routes ensuring swift movement of goods on both sides. Further, Tipu said that Pakistan was extending maximum cooperation to Tehran to ensure trade flows remain unaffected by the evolving situation.
Middle East crisis: Jubilant FoodWorks reports some Domino’s outlets affected by LPG shortage – The Times of India
Alex Vesia, Dodgers pitcher who lost infant daughter, gets standing ovation after scoreless return to mound
Men’s March Madness 2026: Ranking the remaining eight teams
-
Business1 week agoFlipkart group CFO to leave co amid IPO plans – The Times of India
-
Business1 week agoVideo: The Effects of High Oil Prices
-
Fashion1 week agoChina’s textile & apparel exports surge 17% to $50 bn in Jan-Feb 2026
-
Sports1 week agoRating Adidas’ 2026 World Cup away shirts: Argentina, Spain, Mexico and more
-
Sports1 week agoAmerican Conference Commissioner Tim Pernetti thanks Trump for Army-Navy game executive order
-
Tech1 week ago
The Corsair 4000D RS PC Case Keeps Your System Cool
-
Tech1 week agoGamers Hate Nvidia’s DLSS 5. Developers Aren’t Crazy About It, Either
-
Tech1 week ago‘Uncanny Valley’: Nvidia’s ‘Super Bowl of AI,’ Tesla Disappoints, and Meta’s VR Metaverse ‘Shutdown’