UK Inflation Drops to 4.6%, Hitting Two-Year Low

UK inflation dropped to a two-year low of 4.6% in October, down from 6.7% the previous month. The headline consumer price index remained flat on a monthly basis, contrary to expectations of a slight increase. Core CPI, which excludes volatile items, also decreased to 5.7% annually. The drop in inflation was primarily driven by housing and household services, as well as food and non-alcoholic beverages. The Bank of England is likely to keep interest rates unchanged in December, and further declines in inflation may bring it closer to the central bank's 2% target.