October inflation figure UK satisfaction

THE UK’s annual inflation rate for October dropped from September’s 6.7 per cent to 4.6 per cent.

Cheaper gas and electricity were responsible for the biggest fall in more than three decades, surpassing the 4.8 per cent figure that had been predicted by a poll of economists carried out for Reuters.

The announcement of the October figures also prompted a 1.1 per cent surge in the FTSE 100 stock index. Although the encouraging inflation figure did not indicate that prices fell in October, it meant they rose more slowly than forecast, boosting hopes that the Bank of England could cut the interest rate next year.

Core inflation, which excludes energy and food amongst other volatile elements, also fell more than analysts expected but still remained high at 5.7 per cent after slipping from 6.1 per cent, short of the 5.8 per cent predicted by the Bank of England and the City.

Food price inflation is now at its lowest since 2021 following a fall in the annual increase rate to 10.1 per cent in October.  This was down from 12.2 per cent in September and last March’s high of 19.2 per cent, the highest annual rate in more than 45 years, Office for National Statistics revealed.

“In January I made halving inflation this year my top priority,” Sunak said on November 15.

“I did that because it is, without a doubt, the best way to ease the cost of living and give families financial security.  Today, we have delivered on that pledge.”