Inflation in the U.K. fell to 1.7 in September, marking its first dip below the Bank of England's 2 target since April 2021. This sharper-than-expected decline has raised market expectations for a potential 25-basis-point rate cut in November. Core inflation in the U.K. fell to 3.2 in September, down from August. Economists caution that inflation could rise again in October due to a regulatory energy price cap increase.