UK inflation unexpectedly dropped to 1.7% in the year to September, marking the lowest rate in three and a half years.
According to official figures, the slowdown was driven mainly by lower airfares and falling petrol prices.
This decline means inflation, the rate at which prices increase over time, is now below the Bank of England’s 2% target, potentially paving the way for further interest rate cuts next month.
September’s inflation figure is also used to determine the annual rise in benefits, such as Universal Credit, scheduled for next April.
This includes key disability benefits like Personal Independence Payment, Attendance Allowance, and Disability Living Allowance, as well as Carer’s Allowance.
The Office for National Statistics reported that motor fuel and lubricant prices fell sharply, down 10.4% compared to September last year.
Lower airfares, driven by post-summer sales, also contributed to the inflation dip.
However, households faced rising costs for food and non-alcoholic drinks, with notable price increases in essentials like milk, cheese, eggs, and fruit.
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Darren Jones, Chief Secretary to the Treasury, said the easing of price rises is “welcome news for millions of families.”
He added, “There is still more to be done to protect working people, which is why we remain focused on restoring economic growth and stability to deliver real change.”
(BBC)
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