Official figures have revealed that UK inflation dropped to 1.7% in the year leading up to September, which is the lowest rate seen in over three years. The drop was predominantly caused by lower airfares and petrol prices. These latest figures were larger than the predicted 1.9% rate forecasted by economists, and it means that the rate of inflation is now below the Bank of England’s desired 2% target. This now paves the way for interest rates to be reduced further next month.
Many families are likely to welcome the news of this pace of price rises reduction. Darren Jones, who is the Chief Secretary to the Treasury, offered his opinion on the matter, suggesting that “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.”
Inflation figures from September are traditionally used to determine how much most benefits will rise in the upcoming April. For this reason, many people will be scrutinising the rate to determine whether their personal benefit level will go up the following year.
It will be interesting to see the impact of the reduced inflation rate on interest rates and the economy as a whole. This figure is likely to be watched carefully in the coming months, as it could have a significant impact, particularly among families who will benefit from increased stability
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