Inflation in the United Kingdom (U.K.) fell to a two-year low of 4.6% in October.
The decline in consumer prices during October was much greater than expected. In September of this year, the inflation rate across the U.K. was 6.7%.
Economists polled by the Reuters News Agency had expected the Consumer Price Index (CPI) to rise by 4.8% on a year-over-year basis in October.
On a monthly basis, inflation was flat in October from September. Economists had expected a 0.1% monthly increase.
Core CPI, which excludes food, energy, alcohol, and tobacco prices, declined to an annualized 5.7% in October from 6.1% in September.
Costs for housing and household services fell in October to their lowest level since records began to be kept in 1950, according to the Office for National Statistics.
Food and non-alcoholic beverages also contributed to the October inflation decline, with the annual rate falling to its lowest level since June 2022.
The Bank of England recently left its trendsetting interest rate unchanged at 5.25% after 14 consecutive rate increases.
The inflation decline is good news for British Prime Minister Rishi Sunak who pledged to cut inflation in half at the start of this year when it was running at 10%.
The latest inflation reading has futures traders now betting that the Bank of England will hold interest rates steady again at its next meeting in December.