16 Oct 2024UK inflation fell to 1.7% in the year to September, the lowest rate in more than three years, according to the latest figures from the Office for National Statistics (ONS). Lower airfares and petrol prices were the main driver behind the fall, the ONS said. The drop in the rate was larger than expected - economists had predicted a 1.9% fall. It also means inflation is now below the Bank of England's 2% target for the first time in over three years raising the possibility of an interest rate cut next month. Lindsay James, Investment Strategist at Quilter Investors, said: 'For the first time in more than three years inflation is back below the Bank of England's 2% target. 'With inflation falling below this level and the pace of wage growth slowing, the conditions appear ripe for another rate cut at the Bank of England's next decision in early November, and maybe even the one after in December too. 'This will please the government in the run up to the hotly anticipated budget, where we are being repeatedly told tough decisions are to be announced, so any sliver of good economic news will likely be pounced upon.'