The latest figures on consumer price inflation have just been released by the ONS showing that annual CPI has been running below the Bank of England’s target of 2% at 1.7% for the last two months of August and September.
Much of the fall has come about as regulator’s tariff cap pushed down electricity and gas prices for 15 million homes
The figure, at its lowest level in three years means that pressure on interest rates is significantly mitigated and likely that the next few months will certainly see at worst static rates or perhaps even a cut if the global economy slows down or if the domestic economy suffers due to Brexit.
This month’s forecast for October’s outturn year to date was 1.6%. That would be the lowest figure since January 2017.
“A fall in utility prices due to a lowering of the energy price cap helped ease inflation in October,” an ONS spokesperson said. “However, this was partially offset by rising clothing prices.”
Gas and electricity prices fell by 8.7% and 2.2% respectively in October from September.