The fall has been hailed as a key victory for Rishi Sunak, who pledged to halve inflation, but it is also a win for the Bank of England. The Bank raised interest rates 14 times in its effort to bring inflation back down to its 2% target, before back-to-back pauses at its last two meetings.
A sharp decline in the pace of price rises was seen as almost certain as the new, lower, energy price cap came into effect at the start of October, reducing the amount spent on heating bills. But the rate fell even more quickly than City economists or the Bank itself predicted.
The rate-setting Monetary Policy Committee usually pays closer attention to core inflation — which strips out food and energy prices for a clearer picture of the long-term trends on prices. That rate fell more slowly to 5.7%, its lowest level since March 2022.
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The era of longevity is almost upon us. But can our minds really keep up?
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