UK inflation fell unexpectedly to 1.7% within the 12 months to September, the bottom price in three-and-a-half years.
Decrease airfares and petrol costs had been the primary drivers behind the shock slowdown, official figures confirmed.
It means inflation – the speed costs rise at over time – is now under the Financial institution of England’s 2% goal, paving the best way for rates of interest to be reduce additional subsequent month.
September’s determine is generally used to set how a lot many advantages rise, reminiscent of Common Credit score, subsequent April.
This contains all the primary incapacity advantages – private independence fee, attendance allowance and incapacity residing allowance – in addition to carer’s allowance.
However an increase of 1.7% for advantages could be lower than April’s anticipated rise within the state pension of 4.1%, which is governed by the so-called triple lock.
The Workplace for Nationwide Statistics (ONS) stated petrol and diesel costs had been considerably decrease, dropping by 10.4% in September in contrast with the identical month a 12 months earlier.
The price of fares for home, European and long-haul flights additionally dragged down the inflation price. Fares usually fall after the summer time rush, however they fell greater than regular.
Nevertheless, households had been hit by an uptick within the tempo of meals and non-alcoholic drink worth rises, with prices leaping for milk, cheese, eggs, comfortable drinks and fruit.
Chief secretary to the Treasury, Darren Jones, stated the drop within the tempo of worth rises general could be “welcome information for tens of millions of households”.
“Nevertheless, there may be nonetheless extra to do to guard working folks, which is why we’re centered on bringing again progress and restoring financial stability to ship on the promise of change,” he added.
The shock fall within the UK’s inflation price comes forward of this month’s Funds, with Chancellor Rachel Reeves looking to make to make tax rises and spending cuts to the value of £40bn.
