MINISTERS were urged to keep boosting living standards as a top priority today after official figures showed lower than expected inflation of 3.8 per cent in September.

The TUC called on the government to bring down energy bills for households and businesses at the Budget after the Office for National Statistics (ONS) revealed easing food costs had offset upward pressure from petrol prices.

TUC general secretary Paul Nowak said: “Although inflation now seems to have stopped rising, workers are still struggling to keep up with the cost of living because of high energy, food and water bills.  

“The government was straight out of the blocks putting more money in the pockets of the lowest paid with the increase in the minimum wage — it must now use the upcoming Budget to bring down energy bills for households and businesses.

“And the Bank of England has to play its part too – with inflation today coming in lower than many had expected, it’s vital we see further interest rate cuts.” 

Economists had predicted CPI inflation to hit 4 per cent. The weaker-than-expected rise will boost the Bank of England’s bid to bring inflation back down to its 2 per cent target rate.

Principal analyst at the Work Foundation think tank Rebecca Florisson said: “Food inflation has slowed but groceries are still 4.5 per cent more expensive on the year, and the rising cost of essentials is particularly bad news for low-income households.

“The Chancellor should prioritise boosting living standards in the years ahead because the alternative would push more of those out of work into poverty, forcing them to take on precarious and poorly paid work, while ultimately remaining reliant on the welfare system.”

Chancellor Rachel Reeves said: “I am 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.

“I am determined to ensure we support 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.”

The retail prices index rate of inflation slowed to 4.5 from 4.6 per cent in August, the ONS said.