The latest government data has revealed that annualised inflation was by 4.6% year-on-year, which was the lowest annual rate in two years, largely thanks to a fall in energy prices.

Core Inflation came in at 5.7% in the 12 months to October 2023, down from 6.1% in September. Nicholas Hyett, an investment analyst at Wealth Club, commented: “At the headline level at least, these numbers are cause for celebration. A substantial fall in inflation should help ease the cost-of-living crisis, while a pause in interest rate rises will be a huge relief to mortgage holders.

“Downing Street will be particularly pleased to wave goodbye to the UK’s status as the inflation nation, since it means the Prime Ministers pledge to cut inflation in half is achieved a month ahead of schedule – although whether the government is entitled to celebrate a fall in global energy prices over which it has no control is rather dubious.

“Core inflation, which measures domestically generated inflation rather than moves caused by swings in global commodity prices, is falling but still stubbornly high. Until core inflation starts to show sustainable falls, we’re not completely out of the woods and central bankers will have their fingers poised over the interest rate trigger.”