UK inflation falls to 3.6% in October but wider economic backdrop 'remains fragile'

Ahead of Autumn Budget

Linus Uhlig
clock • 1 min read

UK inflation rose by 3.6% in the 12 months to October 2025, down from 3.8% in September, strengthening the case for a further rate cut from the Bank of England next month.

On a monthly basis, the Consumer Prices index (CPI) rose by 0.4% in October 2025, compared to a jump of 0.6% during the same month a year prior, according to data from the Office for National Statistics (ONS).  This drop in inflation was in line with expectations of economists polled by Reuters.  Easing CPI was driven primarily by gas and electricity prices, which jumped by less than the same time last year. The costs of hotels also fell, but food prices rose slightly.  Professionals noted that the data will be welcomed by rate setters at the Bank of England and Chancellor Rachel R...

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