UK inflation is at its lowest level in 2 years

The UK Consumer Price Index (CPI) showed a sharp annual fall in October.

Annual inflation, which was announced at 6.7 percent in September, decreased to 4.6 percent in October. The fall in energy prices greatly influenced the reduction in inflation. The expectation was that inflation would decline to 4.8 percent annually.

Core inflation, which excludes energy and food prices, decreased from 6.1 percent to 5.7 percent annually.

The fall in inflation means that the government’s goal of halving inflation by the end of the year has been met early.

‘WE MUST CONTINUE ON OUR PATH’

British Prime Minister Rishi Sunak, in his statement following the inflation data, said his government should “stay the course” to bring inflation down to the 2 percent target.

“Official figures published this morning confirm that we have halved inflation, delivering on the first of the five priorities I set out earlier this year,” Sunak said in a statement.

Sunak said: “But while it is good news that prices are no longer rising so rapidly, we know that many people are still struggling; “Therefore, we must continue our path to reduce inflation to 2 percent,” he said.