UK Inflation Hits 1.7%, Its Lowest Level in More Than Three Years

Due to lower airfare and petrol prices, UK inflation fell to 1.7% in September, the lowest level in three years.

According to official data issued by the Office for National Statistics (ONS), the UK’s inflation rate dropped to 1.7% in the year ending in September, its lowest level in more than three years.

Both consumers and officials are pleased by this unexpected drop, which was mostly caused by lower airfare and gas prices.

Although economists had forecast a 1.9% decline in inflation, the rate of decline was more severe than anticipated, bringing it below the Bank of England’s objective of 2%. Monetary policy is anticipated to be impacted by this development, with additional interest rate reductions probably occurring next month as part of initiatives to accelerate economic growth.

The Treasury’s Chief Secretary, Darren Jones, stated that the decrease in price increases “will be welcome news for millions of families” throughout the United Kingdom. Households may feel more secure in the face of a turbulent economic climate if living expenses decline.

“There is still more to do to protect working people, which is why we are focused on bringing back growth and restoring economic stability to deliver on the promise of change,” Jones said, acknowledging the economy’s continued difficulties.

Historically, the basis for modifying benefits has been the September inflation rate. Many benefits are therefore anticipated to increase by 1.7% starting in April 2025, giving low-income households and vulnerable groups more financial support.