U.K. consumer prices hit its lowest level since 2016 in October, dragged down by lower energy bills, data from the Office for National Statistics showed Wednesday.
The CPI inflation measure saw a 1.5 percent rise in the year ended October, coming below forecasts of 1.6 percent. Prices fell from 1.7 percent recorded in September.
The slowdown in inflation was triggered by electricity, gas and other fuels as a result of changes to the energy price cap, the ONS said.
The annual core CPI reading held at 1.7 percent. That came in line with analysts’ projections.
As of 09:45 GMT, the pound traded slightly higher versus the U.S. dollar
at 1.2852, ahead of U.S. CPI and Fed Chair Jerome Powell testimony before the
Joint Economic Committee later in the day.