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UK inflation eases for first time in five months to 3.6% before crunch budget
UK inflation eased to 3.6% in October, driven by falling energy prices and slower food inflation, offering a slight reprieve ahead of Chancellor Reeves' budget announcement.
- Last month the Office for National Statistics reported CPI inflation eased to 3.6 per cent in October, down from 3.8 per cent in September and marking the first monthly dip in months.
- Energy base effects and weaker food inflation meant the fall was driven by last year's large increase in energy prices dropping out and a slowdown in food price inflation, economists had widely predicted.
- The Bank of England noted that inflation remains above its two per cent target, so interest rates are expected to stay high after holding the four per cent policy rate earlier this month.
- The drop gives Chancellor Rachel Reeves a rare pre-Budget boost one week before she delivers the autumn Budget on November 26, which is expected to include a raft of tax increases.
- Raisin UK's data shows four million people dipped into savings for debt and three million for healthcare, while personal finance experts warn borrowing costs will stay high and Deutsche Bank forecasts inflation easing by the fourth quarter of 2025.
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Total News Sources14
Leaning Left2Leaning Right3Center7Last UpdatedBias Distribution58% Center
Bias Distribution
- 58% of the sources are Center
58% Center
L 17%
C 58%
R 25%
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