UK inflation drops sharply to 4.6% as energy prices fall

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The UK's annual inflation rate fell sharply to 4.6% in October on the back of a drop in the cost of gas and electricity, outperforming City forecasts.

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15 Nov 2023

The steep decline in last month’s consumer prices index (CPI) reading from 6.7% in September beat the 4.8% predicted by a poll of economists for Reuters.

The fall does not mean prices are going down, only that they are rising less rapidly. Nevertheless, it is expected to ease fears that the Bank of England will increase interest rates again this year, despite being more than twice its 2% target.

It also means Rishi Sunak has achieved his target set in January of halving inflation by the end of the year from the 10.7% average in the last quarter of 2022.

Sunak said: “While it is welcome news that prices are no longer rising as quickly, we know many people are continuing to struggle. We must stay the course to continue to get inflation all the way back down to 2%.

“In January I made halving inflation this year my top priority. I did that because it is, without a doubt, the best way to ease the