The last few years have been turbulent for the UK economy to say the least, with inflation being of particular concern.
Since the pandemic we've seen a historic rise in inflation, peaking in the autumn of 2022 at 11%. Since then inflation has been steadily reducing as markets gradually stabilise.
In August it was reported that inflation was now down to 2.2%, just shy of the Bank of England's target of 2%.
And now we're seeing the continuation of this downward trend as, rather unexpectedly, UK inflation has fallen to 1.7% in the year to September.
This is the lowest inflation has been for three and half years. The question on many people's lips is, will another interest rate cut follow?
Are interest rate cuts next?
Inflation falling below the Bank of England's target of 2% certainly makes us optimistic about the prospect of further interest cuts.
Back in August the Bank of England cut interest rates down to 5%, the first interest cut in four years, and some experts are suggesting more cuts could follow.
With inflation down to 1.7%, several financial analysts are expecting that interest rates will be cut in November, with some even suggesting that a further December cut could follow.
However, this is merely speculation and, with Labour's first budget on the way, only time will tell if these cuts will materialise.
The recent interest cut down to 5% is a good start. We would of course welcome any further cuts, but already things are looking more optimistic.
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