Further fall takes UK headline inflation rate 1.6%

UK - The headline rate of inflation fell further last month, as mortgage lenders passed on the Bank of England's September interest rate cut to customers.

News that the central bank's largesse was being shared out among homeowners prompted forecasts that inflation could fall to its lowest levels since the early 1960s by the end of the year - just in time for the traditional January pay rounds.

Richard Iley, economist at ABN Amro, said: "Headline inflation still influences pay demands. A low rat

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