'Welcome news for consumers' as inflation drops to three-year low

1.5% in October

Inflation in the UK has fallen to a three-year low level in October as the prices of electricity, gas and fuels were kept low by the energy cap, the Office for National Statistics (ONS) has revealed.

UK CPI fell to 1.5% in October from 1.7% in September, below analysts' estimates of 1.6%, after the energy regulator Ofgem lowered the price caps on services under its jurisdiction last month, causing energy prices to slump. Gas and electricity prices fell by 8.7% and 2.2% respectively over the month of October, the ONS said, though the falls were partially offset by rising costs of clothing. At the same time, ONS data released yesterday (Tuesday 12 November) revealed average earnings, excluding bonuses, rose by 3.6%, slower than the 3.8% growth seeing during the previous month. UK...