UK inflation has fallen to its lowest level in almost three years as the energy price cap takes effect, resulting in cheaper utility costs for households. Consumer prices rose 1.5% in October, against 1.7% in September according to the Office of National Statistics (ONS). Gas and electricity prices dropped by 8.7% and 2.2% respectively in October.

Energy regulator Ofgem lowered the price cap last month, which will see around 15million customers on default tariffs or prepayment meters benefit from lower energy bills this winter, typically saving £75 a year.

 

A spokesperson for the ONS said:

“A fall in utility prices due to a lowering of the energy price cap helped ease inflation in October. However, this was partially offset by rising clothing prices.”