Consumer price inflation eased more quickly than expected in September, falling from 2.2 to 1.7 per cent, data from the Office for National Statistics shows.
Last month’s inflation reading was below market expectations of 1.9 per cent and boosts the case for further Bank of England interest rate cuts in November.
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Fall in CPI consolidates expectations of a November cut – but too soon to call another in December
Hetal Mehta, head of economic research at St. James’s Place:
‘The fall in UK inflation is very broad-based, and for the BoE, the core inflation and services inflation numbers in particular will be good news.
‘They should consolidate the expectations of a cut in November and perhaps the vote split will narrow.
‘As for back-to-back cuts, I think more evidence of a continued decline in inflation is needed before we see this and suspect the BoE will also want to have a more time to digest the Budget announcements.’
Inflation slows to 1.7%
Consumer price inflation eased more quickly than expected in September, falling from 2.2 to 1.7 per cent, data from the Office for National Statistics shows.
Last month’s inflation reading was below market expectations of 1.9 per cent and boosts the case for further Bank of England interest rate cuts in November.
