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The Guardian - UK
The Guardian - UK
Business
Phillip Inman

UK inflation surprise opens up wriggle room for lower rates and less painful budget

The Bank of England
The Bank of England’s monetary policy committee meets in November. Photograph: Thomas Krych/Zuma Press Wire/Shutterstock

At a glance, last month’s sharp drop in the headline inflation figure to 1.7% tells the Bank of England all it needs to know when it considers whether to cut interest rates next month.

The plunge from 2.2% in August puts the rate of prices growth well below the central bank’s 2% target and back in territory that we last saw in early 2021 – long before the Russian invasion of Ukraine sent energy prices rocketing.

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