BRITAIN’S dip in inflation means that next year’s benefits rise will “barely touch the sides,” analysts warned today.

The Resolution Foundation think tank cautioned that September’s fall in inflation is “badly timed,” with it being used to set how much benefits are uprated next year and therefore resulting in a lower increase.

CPI inflation fell to 1.7 per cent last month, down from 2.2 per cent in August, driven by a sharp fall in transport prices.