Update: Rate hike expectations pushed back as UK falls into deflation

The ONS said the UK's consumer price index was weaker in September due to a smaller than usual rise in clothing prices and falling motor fuel prices. The UK's Retail Prices Index also fell to 0.8% in the year to the end of September, down from 1.1% in August. The ONS said: "While negative headline inflation rates are unusual, it is worth considering this latest figure in the broader context. "Since the turn of 2015, the rate of inflation has been low, varying between a positive 0.3% and negative 0.1%. Calculating an average inflation rate for the year to date gives a figure of 0.0%...