Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March

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UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.

Hourly rate to increase by 95p to £14.80 in London and by 85p to £13.45 for the rest of the country

Almost half a million workers are to receive a pay boost after it was announced that the real living wage paid voluntarily by 16,000 UK companies will rise to £13.45 an hour.

Distinct from the national living wage, which is a statutory minimum, the real living wage is calculated each year based on the cost of essentials, and is paid by more than half of the companies in the FTSE 100.