UK inflation fell to a two-year low while the base rate of interest was unchanged by the Bank of England for the second month in a row.
The Office for National Statistics (ONS) found that the UK’s rate of Consumer Price Index inflation fell to 4.6% from 6.7% in September.
The ONS found that a small reduction in the energy price cap helped to bring the inflation rate down. According to the data, electricity costs are down 15.6% compared to a year earlier, whilst gas costs are down by 31%.
Meanwhile, the Monetary Policy Committee (MPC) held the base interest rate at 5.25%.
The latest decision marks the second time in a row that interest rates have been held at 5.25% – their highest level in 15 years.
David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:
‘The decision to again hold the interest rate at 5.25% will allay some concerns of the businesses we speak to that are unable to stomach further rises.
‘Our research has shown that interest rates have grown as a key issue among companies. This is especially true for smaller firms and those in consumer facing sectors who have seen rising borrowing costs and decreased customer demand.’
Internet link: ONS website Bank of England website BCC website
