INSTANT VIEW-Inflation falls more than expected in Oct

LONDON (Reuters) - Annual consumer price inflation tumbled to 4.5 percent in October from 5.2 percent the previous month, the Office for National Statistics said on Tuesday.

The larger-than-expected drop was driven by lower fuel, transport and food costs.

KEY POINTS

- First annual drop in CPI since Aug 2007. Lowest annual CPI rate since July 2008. The ONS said the deceleration to 4.5 pct from 5.2 pct in Sept was the largest since the series began in Jan 1997.

- Lowest annual RPI rate since April 2008. Biggest monthly deceleration in annual rate since Jan 1993.

- Lowest annual RPIx rate since May 2008. Biggest monthly deceleration in annual rate since April 1991.

- Lowest annual transport inflation in CPI series since Sept 2007.

ANALYST REACTION

BRIAN HILLIARD, CHIEF ECONOMIST, SOCIETE GENERALE