UK inflation has eased to 3.6% in the year to October — its lowest level in four months — helped by slower increases in household energy costs and falling hotel prices.
However, food inflation picked up again after a brief dip, underlining the ongoing pressure on household finances just a week before the government delivers its highly anticipated Budget.
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.
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