Breaking - Inflation in the UK slows sharply below the Bank of England's target.

The British Office for National Statistics released inflation data for September on Wednesday morning, showing a slowdown in inflation growth in the country at a pace greater than expected, falling below the Bank of England's target of 2%. According to the released data, the overall inflation rate in Britain slowed to 1.7% year-on-year in September, the lowest level of inflation since April 2021. Markets had expected the index to slow to 1.9%, while the Consumer Price Index recorded a growth of 2.2% in August. As for the core inflation rate (which excludes food and energy prices), its growth also slowed, recording 3.2% year-on-year in September, while market expectations indicated a slowdown to 3.4%. Core inflation had slowed to 3.6% in August. Consumer price indicators reflect inflation rates in the economy, with inflation defined as a general rise in the prices of goods and services. The relationship between inflation and interest rates is a fundamental factor in understanding the importance of such indicators in Britain, as well as how they impact markets and all investments.