UK October CPI: government reaches target to half inflation by end of 2023 with rate falling to 4.6%

The UK's inflation rate dropped sharply last month, with the government meeting its target to half inflation by the end of the year.

According to the Office for National Statistics (ONS), the Consumer Prices Index (CPI) inflation was at 4.6% in October, a notable decrease from 6.7% in September. The ONS said that the biggest driver in this reduction of the CPI was house prices.

Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: “Inflation fell substantially on the month as last year’s steep rise in energy costs has been followed by a small reduction in the energy price cap this year. Food prices were little changed on the month, after rising this time last year, while hotel prices fell, both helping to push inflation to its lowest rate for two years.”

Rishi Sunak's government had pledged to half inflation to 5.3% or under by the end of 2023, with it being one of the main policy pillars of his premiership in the past year. The Prime Minister has welcomed today's news.

He said: “In January I made halving inflation this year my top priority. I did that because it is, without a doubt, the best way to ease the cost of living and give families financial security. Today, we have delivered on that pledge.”

Sunak said that "hard decisions and fiscal discipline" were key to reaching the inflation rate target, adding: “Official figures released this morning confirm we have halved inflation, meeting the first of the five priorities I set out at the beginning of this year. While it is welcome news that prices are no longer rising as quickly, we know many people are continuing to struggle, which is why we must stay the course to continue to get inflation all the way back down to 2%.”