UK inflation falls dramatically to 4.6%

UK inflation slowed more than expected to 4.6% in October, below predictions and well under September's 6.7%, mostly attributed to lower energy prices. The core CPI rate however, excluding energy and food, also decreased, and the overall trend aligns with a global slowdown in inflation, following on from similar data in the US yesterday. Prime Minister Rishi Sunak claimed success in halving inflation by year-end. The drop in inflation is positive ahead of the government's Autumn Statement but did see sterling dip as markets believe the Bank of England won't raise interest rates further. The Bank of England remains cautious about easing borrowing costs, waiting for clear signs of cooled price growth and labour market conditions.