The UK’s annual inflation rate fell to 3.6 per cent in the year to October, down from 3.8 per cent in September, according to data published by the Office for National Statistics (ONS).
It is the first fall in the headline Consumer Prices Index (CPI) measure since May and offers modest relief to households after a period of persistent price growth. The ONS said the easing was largely due to slower increases in energy costs and hotel prices, partly offset by higher food prices.
Grant Fitzner, Chief Economist at the ONS, said: “Inflation eased in October, driven mainly by gas and electricity prices, which increased less than this time last year following changes in the Ofgem energy price cap. The costs of hotels was also a downward driver, with prices falling this month. These were only partially offset by rising food prices, following the dip seen in September.”
The latest figures arrive less than a week before the Chancellor’s Autumn Budget. The moderation in price growth offers the government a slightly improved fiscal backdrop, though inflation remains above the Bank of England’s 2 per cent target.
Core inflation — which excludes food, energy, alcohol and tobacco — stood at 3.5 per cent in October, showing that underlying pressures remain.
For businesses, the softer inflation reading may provide some respite from cost increases across supply chains and utilities. For households, the slower pace of price rises will ease cost-of-living strain, but cumulative price growth over the past two years continues to weigh heavily on real incomes.
The ONS will publish its next inflation update on 18 December, covering the November data.
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