Inflation in the UK has fallen below the Bank of England’s desired two per cent target for the first time in three years, according to the latest Office for National Statistics (ONS) figures.
The consumer price index (CPI) rate eased to 1.7 percent for the 12 months to September 2024 in a boon for Britain’s economy following the cost of living crisis.
This drop comes below the forecasts of economists who were pricing in inflation coming in at around 1.9 per cent for September.
For the 12 months to August 2024, the CPI rate was at 2.2 per cent which was slightly above the Bank’s target.
Analysts believe an inflation figure of 1.9 per cent of under will put further pressure on the central bank’s Monetary Policy Committee (MPC) to cut interest rates.
The MPC has opted to hike the base rate over the last couple of years in response to soaring inflation.
The Bank of England is likely to cut interest rates once again this year GETTY In October 2022, CPI inflation in the UK jumped to 11.1 per cent after energy prices soared due to the Russian invasion of Ukraine.
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