Sticky core inflation means UK interest rate cuts are not coming any time soon
by Larry Elliott Economics editor from Economics | The Guardian on (#6GCRX)
Bank of England will look beyond drop in headline figure, and it is too early to say cost of living crisis is over
The annual rate of inflation was always going to fall in October and the only real question was by how much. In the end, the decline from 6.7% to 4.6% was chunkier than expected and the biggest in more than three decades. That brought some welcome good news to the prime minister after a tricky few days.
The main reason for the sharp drop in inflation as measured by the consumer prices index was that the increase in energy prices in October 2022 was not repeated. Gas prices fell by 7% last month, having risen by almost 37% in the same month a year earlier.
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