The United Kingdom’s inflation rate dropped to 2.3% in September, the lowest in three years, according to official data from the Office for National Statistics. The fall has been driven largely by declining energy and food prices, offering a sense of relief to millions of households struggling with cost-of-living pressures.
The Bank of England is expected to maintain interest rates at 5.25% for now but may consider rate cuts early next year if the trend continues. Economists say this marks a “turning point” after two years of high inflation that eroded real incomes.
British Prime Minister Keir Starmer called the data “a positive step for working families,” while business groups urged the government to focus on long-term stability. Meanwhile, some sectors—particularly housing—remain under stress as rents continue to rise despite easing inflation.
Experts believe this decline could help restore consumer confidence, which has been weak since the post-pandemic economic turbulence began.