![Inflation drops to lowest rate since 2021 in boost to chancellor Inflation drops to lowest rate since 2021 in boost to chancellor](https://cdn.magzter.com/1588175106/1729129364/articles/pcRep8Br51729138460469/INFLATION-DROPS-TO-LOWEST-RATE-SINCE-2021-IN-BOOST-TO-CHANCELLOR.jpg)
Figures from the Office for National Statistics show the consumer prices index dropped sharply to 1.7%, down from 2.2% in August, in a bigger fall than anticipated, driven by lower air fares and petrol prices.
It is the first time headline inflation has dropped below the central bank's 2% target since April 2021, positive news for the chancellor before her set-piece tax and spending event in two weeks' time.
Reeves has said Labour's budget will focus on three key objectives: protecting household incomes, repairing public services, and fixing the foundations of the economy with investment in infrastructure. The chancellor has said low and stable inflation is key to her first goal.
The pound fell against the US dollar and the euro, while UK government borrowing costs fell in anticipation of the Bank cutting interest rates.
Darren Jones, the chief secretary to the Treasury, said: "It will be welcome news for millions of families that inflation is below 2%. However, 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."
Diese Geschichte stammt aus der October 17, 2024-Ausgabe von The Guardian.
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Diese Geschichte stammt aus der October 17, 2024-Ausgabe von The Guardian.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
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