UK Inflation's Surprising Dip: A Tale of Two Halves

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Lower Inflation in the UK
The Office for National Statistics (ONS) has reported a significant decline in the UK's inflation rate, primarily driven by lower airfares and petrol prices. The drop of 2.1% exceeded economists' expectations of a 1.9% fall.
This decline brings inflation below the Bank of England's target of 2%, potentially paving the way for further interest rate cuts next month. Chief Secretary to the Treasury, Darren Jones, welcomed the news, stating that it will provide relief to millions of families.
Economic Outlook
The government faces criticism from businesses over a potential tax increase that would impact employers. Meanwhile, expectations of a rate cut next month are growing as pay growth slows to its lowest rate in over two years.
Chancellor Rachel Reeves is expected to outline the government's financial plans for the next year at the International Investment Summit, where deals worth £63bn were announced.
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