Bigger than forecast annual drop to 1.7% in September puts pressure on Bank of England to cut interest rates
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UK Inflation has fallen below 2% for the first time in three and a half years, piling further pressure on the Bank of England to cut interest rates at its meeting next month.
The consumer prices index dropped sharply to 1.7% last month, down from 2.2% in August. The plunge – fuelled by lower air fares and petrol prices – beat City economists’ forecast of a fall to 1.9%.
