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Inflation dropped below the Bank of England target rate last month for the first time since April 2021, according to new figures.
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation fell to 1.7% in September, from 2.2% in August.
It was lower than expected, with analysts having predicted a reading of 1.9% for the month.
The September figure is used by the Government to decide a number of tax and spending changes for next year, and means UK state benefits will rise by 1.7% next year.
It also confirms that state pensions will increase by 4.1% next April, due to the triple-lock policy.
ONS chief economist Grant Fitzner said: “Inflation eased in September to its lowest annual rate in over three years.
“Lower airfares and petrol prices were the biggest driver for this month’s fall.”
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