Inflation in the U.K. has fallen to its lowest level in more than three years, a drop that has cemented market expectations that the Bank of England will lower interest rates at its next policy meetin

UK inflation drops below 2% target in September, weakening pound, and likely meaning a small increase in state benefits next year.   16:01 Bond trading giant Pimco is optimistic that Britain’s new government is unlikely to upset investors in its first budget this month.

This month's inflation rate is also normally used to set April's increase in benefits including jobseeker's allowance, maternity allowance, housing benefit and universal credit.

To try to slow price rises, the Bank increased rates to encourage people to spend less, and bring inflation down. While the rate has dropped, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace.

British inflation fell by more than expected last month, including key measures watched by the Bank of England, according to data on Wednesday (Oct 16) that bolstered bets on an interest rate cut next month.

Thailand's government still wants to see a higher inflation target that will push up prices, the finance minister said on Thursday after the central bank's surprise interest rate cut a day earlier. Wednesday's rate reduction will help increase liquidity and confidence,

Egypt looks set to wait until next year to make its first interest-rate cut since 2020 as it grapples with an unexpected quickening in inflation and fears of a wider conflict in the Middle East.

Britain's annual inflation rate fell to a three-year low in September, official data showed Wednesday, fuelling speculation that the Bank of England will resume cutting interest rates next month.

UK inflation slipped below the Bank of England’s 2% target for the first time in more than three years, spurring investors to bet on a quicker pace of interest-rate cuts in the coming months. Most Read from BloombergHow Mexico City Averted All-Out DroughtInside the ‘Utopias’ of Mexico CityDubai’s Allure to Expats Is Weighing on City’s InfrastructureMexico Seeks to Halve Permitting Time to Attract More FactoriesWhat It Takes to Make City Solutions Go ViralConsumer prices rose 1.