UK Inflation fell below 2% in September for the first time in three and a half years, piling further pressure on the Bank of England to cut interest rates at its meeting next month.
The consumer prices index dropped from 2.2% in August to 1.7% last month, according to figures from the Office for National Statistics.
Investors had expected inflation to fall to 1.9%.
The drop is the first time annual price increases have moderated to a level below the central bank’s 2% target since April 2021.
Policymakers at the Bank are expected to cut interest rates by a quarter of a percentage point when they meet in November to 4.75%.
UK inflation has been on a downward trajectory since hitting a peak of 11.1% in October 2022, driven by increases in energy prices and a sharp rise in food prices.
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