The Bank of England's inflation target is met for the first time in over three years as UK inflation falls to 1.7%.

The U.K.'s inflation rate decreased significantly to 1.7% in September, as announced by the Office for National Statistics on Wednesday.

The Bank of England's headline rate came in below the expected 1.9% for the month, marking the first dip below the 2% target since April 2021, according to a poll of economists by Reuters.

For the past four months, inflation has remained near that rate, with August's figure being 2.2%.

The core inflation rate, excluding energy, food, alcohol, and tobacco, was 3.2% in September, lower than the 3.6% recorded in August and below the 3.4% forecast of a Reuters poll.

The dominant portion of the U.K. economy, the services sector, experienced a significant decrease in price rise last month, dropping from 5.6% in August to 4.9%, which is its lowest rate since May 2022.

The Bank of England's policymakers are closely monitoring core and services inflation as they consider whether to lower interest rates at their upcoming November meeting.

The latest inflation print is expected to result in an 80% probability of a November rate cut, according to market pricing as of Wednesday morning. Analysts on Tuesday pointed to the lower wage growth reported by the ONS this week as supporting the case for a cut. The BOE reduced its key rate by 25 basis points in August before holding in September.

Last month, the inflation rate in the euro zone fell below the European Central Bank's target of 2%, reaching 1.8%, according to recent data.

This is a breaking news story and will be updated shortly.