- The rate of CPI inflation has fallen to 4.6 per cent in the UK
- Analysts think that the BoE’s next move will be a rate cut – but when?
The headline rate of inflation fell sharply last month, dropping from 6.7 per cent in September to 4.6 per cent in October. By this point, any evidence of cooling inflation would be greeted as good news, but moving below the 5 per cent threshold provides a particular cause for celebration.
5 per cent is an important psychological value, below which price growth looks a lot more normal by historical standards, as the chart shows. At 5 per cent, prices take around 14 years to double – far better than the eight years it takes when inflation is at 9 per cent.