UK inflation fell more than expected to a three-year low of 1.7 per cent in September, prompting the pound to fall and traders to increase bets on further rate cuts from the Bank of England this year.
Wednesday’s data release by the Office for National Statistics shows that inflation has come back under the BoE’s 2 per cent target for the first time since April 2021.
The annual increase in consumer prices is less than the 1.9 per cent forecast in a Reuters survey of economists and compares with August’s figure of 2.2 per cent. The retreat was driven by lower airfares and petrol prices.
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