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UK Inflation Softens To 2-Year Low On Energy, Food Prices

Faster-than-expected slowdown took British inflation to the lowest level in two years, soothing fears of further interest rate hikes by the Bank of England and Prime Minister Rishi Sunak claimed that he has delivered on his pledge of halving price growth ahead of election next year.

Consumer price inflation eased to 4.6 percent in October from 6.7 percent in the previous month, the Office for National Statistics reported Wednesday.

The rate was the lowest since October 2021 and was weaker than the expected 4.8 percent. Despite the sharp slowdown, inflation is more than double the 2 percent target.

Excluding energy, food, alcohol and tobacco, core inflation slowed to 5.7 percent from 6.1 percent in September. The rate was below the economists' forecast of 5.8 percent.

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by Renju Jaya

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