UK inflation falls to 1.7%, lowest in three years

The Office for National Statistics (ONS) announced today that UK inflation dropped sharply to 1.7% in September, down from 2.2% in August.

This marks the lowest inflation rate since April 2021 and places it below the Bank of England’s 2% target for the first time in three years.

The decline was primarily driven by reduced energy costs and lower transport prices, particularly in airfares and motor fuels.

Analysts are now predicting potential interest rate cuts as early as November.

Food and non-alcoholic beverages saw the largest upward price pressures, but these were offset by the overall easing of inflation, signalling progress in efforts to manage the cost of living crisis, which peaked at over 11% in 2022.