British inflation unexpectedly dropped to its lowest rate for more than a year in October, reassuring the Bank of England that it has ample time to allow the economy to strengthen before it raises interest rates.
Consumer price inflation fell to an annual rate of 2.2 percent in October from 2.7 percent in September, the Office for National Statistics said on Tuesday.
It was far lower than the BoE’s forecast in August that inflation would exceed 2.8 percent for the rest of the year, although it comfortably exceeds wage growth, meaning pressure on Britons’ living standards will continue.
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