UK inflation drops to four-month low in pre-Budget boost for Rachel Reeves
UK inflation rate falls to 3.6% – the lowest in four months
- UK inflation, measured by the Consumer Prices Index (CPI), fell to 3.6 per cent in October, down from 3.8 per cent in September.
- This marks the lowest inflation rate since June and is primarily attributed to energy prices dropping out of the annual comparison and a slowdown in food price inflation.
- Household services made the largest downward contribution to the rate change, while food and non-alcoholic beverages provided the largest offsetting upward contribution.
- Chancellor Rachel Reeves welcomed the fall, stating she is determined to do more to bring prices down in the upcoming Budget, while other political figures offered differing views on economic management.
- Economists suggest the Bank of England may cut interest rates in December due to falling inflation and rising joblessness, though concerns remain about persistent broader price pressures and the fragile economic backdrop.