The report on The Times that “the cost of living dropped slightly last month” (October 15) is totally incorrect.

The cost of living only goes down when the prices decrease, In fact, prices in September rose by 2.9 per cent.

I would also point out that the rate of inflation, as measured by the 12-month moving average, was 0.1 percentage points higher than in September 2011.

The 12-month moving average is considered by economists to be a more reliable indicator of trends because it removes seasonality from the calculation.

Finally, the statement that, on an annual basis, inflation was 0.1 per cent higher than in September 2011 is also incorrect.

Inflation was, in fact, 0.1 percentage points higher.

In terms of a percentage rise, the annual rate in September 2012 was 3.6 per cent higher than in September 2011.