UK inflation falls to 3.6%, lowest level in four months, as Budget looms

"The latest figures from the Office for National Statistics (ONS) show inflation slipping from 3.8% in September, though the fall was not as sharp as economists had forecast. The reduction strengthens hopes that price pressures have peaked and could pave the way for future interest rate cuts, even as inflation remains above the Bank of England's 2% target."

"Chancellor Rachel Reeves said she remained "determined to do more to bring prices down", acknowledging that the cost of living "is still a big burden on families across the country". Reeves is expected to make easing cost pressures a central theme of the Budget, which is likely to include a mix of tax rises and spending cuts to stabilise the public finances."

UK inflation fell to 3.6% year-on-year in October, its lowest in four months, driven by smaller household energy bill rises and sharper-than-usual falls in hotel prices. Food and non-alcoholic drinks provided the biggest upward pressure, with food inflation rising to 4.9% from 4.5%, as prices for bread, meat, fish, vegetables, chocolate and confectionery increased while fruit became slightly cheaper. Ingredient, energy and regulatory cost pressures in the food sector continued to push prices higher. The Ofgem price cap rose just 2% in October versus a 9.6% increase in 2023, easing headline inflation and supporting hopes of future interest rate cuts.

Read at Business Matters