NEWS

UK inflation falls for first time since March

The UK inflation rate fell to 3.6% in the year to October, according to the latest data from the Office for National Statistics (ONS).

October’s decline was led by a smaller rise in gas and electricity prices compared with a year ago as well as a drop in hotel prices, the ONS said.

Core inflation, which excludes energy and food, was 3.4% in October, down from 3.5% in September. However, food and drink inflation rose to 4.9% in October, up from 4.5% in September.

This is the first time the rate has fallen since March and the lowest the rate has been since the year to June. But it remains above the Bank of England's 2% target.

Ben Jones, Lead Economist at the Confederation of British Industry, said:

‘Inflation eased in October, broadly in line with the Bank of England’s expectations.

‘With Q3 GDP figures confirming a weak growth backdrop, and the labour market continuing to soften, today’s figures add to the evidence that price pressures are gradually subsiding.

‘Combined with the likelihood of further fiscal consolidation measures at the Budget, the data should give the Bank’s Monetary Policy Committee confidence that inflation risks are diminishing.

‘If this trend continues, the case for an interest rate cut in December looks increasingly compelling.’

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25/11/2025