UK inflation has eased to 1.7%, dipping well below the Bank of England target for the first time since 2021, according to the Office for National Statistics (ONS).
It’s a drop on the 2.2% recorded in last month’s Consumer Prices Index (CPI).
The Bank of England has been trying to bring inflation down by keeping interest rates higher.
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It recently trimmed the base borrowing rate to 5% and today’s inflation figure is expected to increase the likelihood of further cuts – welcome news for people with mortgages.
A lower inflation rate doesn’t mean prices are falling – only that they are rising more slowly.
Inflation peaked at 11.1% in October 2022 after energy prices soared due to the start of the Ukraine war.
It fell to 2% in May and July this year, but then edged higher again.
The last time it was below the target – which is set by the government – was April 2021, when it was 1.5%.
The drop in the latest inflation rate, which covers the 12 months to September, was mainly driven by falling fuel costs.
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