UK Inflation Eases to 3.6% in October as Food Prices Rise

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: Getty Images

Britain’s inflation rate slowed to 3.6% in the year to October, easing from September’s 3.8% but highlighting renewed pressure from food costs. The Office for National Statistics said the deceleration was helped by smaller increases in household energy bills and a cooler rise in hotel prices, while food and non-alcoholic drinks continued to push the overall figure higher.

Analysts had expected a sharper drop, with forecasts pointing to a slide to around 3.5%. The data arrives ahead of the government’s forthcoming Budget, which is expected to address cost-of-living relief and the broader fiscal outlook. Chancellor Rachel Reeves said the government remains committed to bringing prices down and acknowledged the ongoing burden on households.

Food inflation remained the main contributor to the uptick, with the 12-month rate edging up to 4.9% in October from 4.5% in September. Within the category, staples such as bread, meat, fish, vegetables, chocolate and confectionery saw price rises, though fruit prices eased slightly.

The softer overall inflation reading raises hopes that price growth has peaked and could support a policy path toward lower interest rates in the longer term. Nevertheless, inflation remains above the Bank of England’s 2% target, and the central bank’s December review will weigh the longer-term implications of higher borrowing costs.

ONS chief economist Grant Fitzner attributed the October easing to several factors, including energy price movements driven by changes to the Ofgem cap and a slower rise in household energy bills year over year. Hotel prices also fell more than usual as the summer-to-Christmas seasonal dip intensified.

Yet some pressures persisted. Fuel costs rose, and the annual cost of raw materials and factory gate prices continued to trend upward, indicating ongoing cost pressures for businesses and consumers alike. The Food and Drink Federation cited rising ingredient costs, energy expenses and regulatory charges as drivers of food price inflation.

Market observers said the Budget could feature measures to further ease inflationary pressures, including potential energy bill relief or targeted tax adjustments. As policymakers monitor underlying inflation metrics, the path toward sustained price relief remains a focal point for economic planning and financial markets.