1.7% UK inflation drops below Bank of England's 2% target for the first time in 3 years.

Recent inflation in the UK has dropped to 1.7%, below the Bank of England's 2% target for the first time in over three years. While this decline may stabilize public finances and reduce welfare spending, it poses challenges for low-income benefit recipients, as their costs are primarily driven by food and energy. Additionally, state pensions may increase significantly due to a revision in wage growth data, potentially adding £100 million to government expenses next April.

October 15, 2024
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