Inflation Falls Sharply in October to 4.6%, Giving Chancellor More Fiscal Leeway
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Inflation fell sharply in October to 4.6%, less than half the rate at the end of 2022.
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The fall in inflation is mainly due to tightening monetary policy, economic slowdown, and lower commodity prices rather than government actions.
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Lower inflation gives the Chancellor more wiggle room against fiscal targets in the Autumn Statement.
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The Bank of England is unlikely to raise rates again soon but also seems in no hurry to cut them.
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Leading indicators suggest inflation will return to the 2% target early next year, with rates ending 2023 around 4%.