UK inflation falls below 2% for first time since 2021 in boost to Rachel Reeves

The bigger than expected fall in UK inflation was partly offset by the rising price of food and non-alcoholic drinks. Photograph: Andy Rain/EPA

Inflation in the UK has fallen to its lowest level in three and a half years, giving a pre-budget boost to Rachel Reeves as expectations grow for the Bank of England to cut interest rates.

Figures from the Office for National Statistics show the consumer prices index dropped sharply to 1.7%, down from 2.2% in August, in a bigger fall than anticipated in financial markets, driven by lower air fares and petrol prices.