Sudden Decline in Inflation Rate in Britain

Official data released today, Wednesday, showed that the annual consumer price inflation in Britain fell to a lower-than-expected level of 4.6 percent in October, after reaching 6.7 percent in September. This increase in consumer prices was the lowest since October 2021. The Bank of England's forecasts and opinions from economists in a Reuters poll indicated an inflation rate of 4.8 percent. Core inflation, which excludes energy and food prices, decreased to 5.7 percent from 6.1 percent, while inflation in the services sector also declined more than central bank expectations to 6.6 percent from 6.9 percent. This data represents positive news for British Prime Minister Rishi Sunak, who promised to halve price increases this year ahead of expected elections in 2024, which polls suggest his Conservative Party is likely to lose. Despite the significant decline in inflation last month, Britain still has the highest rate of consumer price growth among the G7 countries, slightly above France's rate of 4.5 percent.