"UK Inflation Slows, Bolstering BoE and PM Sunak"

UK inflation fell more than expected in October, with annual consumer price inflation dropping to 4.6% from 6.7% in September. The decrease in inflation, driven by lower household energy prices and a broader softening of price pressures, provides relief to the Bank of England (BoE) and Prime Minister Rishi Sunak. The data reinforces expectations of potential rate cuts in 2024 and suggests that the BoE's hiking cycle has ended. Sunak claims victory in fulfilling his pledge to halve inflation this year. However, the BoE warns that the "last mile" of reducing inflation will be challenging, and forecasts indicate a return to the 2% target in late 2025.