UK inflation falls to lowest level in over 3 years, cementing expectations for another rate cut

Associated Press

LONDON (AP) — Inflation in the U.K. has fallen to its lowest level in more than three years, a drop that has cemented market expectations that the Bank of England will lower interest rates at its next policy meeting. The Office for National Statistics said Wednesday that consumer prices rose by 1.7% in September, down from 2.2% the previous month, largely as a result of lower air fares and petrol prices. The decline was bigger than anticipated and means that inflation is below the central bank’s target rate of 2% for the first time since 2021. As a result, the bank  is expected to further reduce its main interest rate when it meets again in early November to 4.75% from 5%.