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UK Inflation Falls to 1.7%, Lowest in Over Three Years

The UK’s inflation rate fell to 1.7% in the year to September, marking its lowest point in over three years, according to official figures released by the Office for National Statistics (ONS).

This unexpected decline, driven largely by lower airfares and petrol prices, comes as a positive surprise for both consumers and policymakers.

Economists had predicted inflation would drop to 1.9%, but the sharper-than-expected fall brings the inflation rate below the Bank of England’s 2% target. This development is expected to influence monetary policy, with further interest rate cuts likely next month as part of efforts to boost economic growth.

Darren Jones, Chief Secretary to the Treasury, noted that the reduction in price rises “will be welcome news for millions of families” across the UK. With living costs easing, households could experience relief in the face of a volatile economic environment.

However, Jones also acknowledged the ongoing challenges in the economy, stating, “There is still more to do to protect working people, which is why we are focused on bringing back growth and restoring economic stability to deliver on the promise of change.”

The September inflation figure is traditionally used as the benchmark for adjusting benefits. As a result, many benefits are expected to rise by 1.7% from April 2025, providing additional financial support to low-income households and vulnerable groups.

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