Sharp inflation drop gives green light to more aggressive Bank of England rate cuts

MPC will also look at global issues and it is likely that UK rates will fall faster than previously thought

• UK inflation falls below 2% for first time since 2021
• Business live – latest updates

At a glance, last month’s sharp drop in the headline inflation figure to 1.7% tells the Bank of England all it needs to know when it considers whether to cut interest rates next month.

The plunge from 2.2% in August puts the rate of prices growth well below the central bank’s 2% target and back in territory that we last saw in early 2021 – long before the Russian invasion of Ukraine sent energy prices rocketing.