UK inflation falls sharply to 1.7%, below Bank of England’s target for first time in over three years

In London, UK, the inflation rate dropped to 1.7% in September, lower than expected. Core inflation also decreased to 3.2%, with services sector prices rising at a slower rate. The Bank of England is considering a rate cut in November, with market pricing indicating an 80% probability. Lower wage growth has supported the case for a cut. In the broader European region, inflation in the euro zone fell below the European Central Bank’s 2% target to 1.8%. This is a developing story and updates will follow.