The rate of inflation in the UK has fallen to 1.7% for the last 12 months, from September last year to September this year. This is the lowest it’s been for a few years, with the pandemic highs of 11.1%(!) in October 2022.
Inflation is the rate of how fast prices of everyday things and services are growing over time, and this rate has been falling recently, with the previous figure being 2.2%. The fall is due to the lower rises in cost of flights and petrol, according to the ONS (Office for National Statistics).
The Bank of England’s target is to keep inflation at 2%, so coming in under could mean more interest rate cuts are on the horizon soon, meaning they lower the Bank of England base rate, which is currently 5%.
A lower base rate could mean lower mortgage rates, but also lower savings rates on savings accounts.
