Wed, 19 Nov 2025

Wed, 19 Nov 2025 UK inflation rate hits lowest level in four months

Prices have been rising more slowly in the twelve months to October but food prices bucked the trend.

* UK inflation rate fell to 3.6% in the year to October, down from 3.8% in September.
* Food prices rose again after a dip in September, with the 12-month inflation rate for food at 4.9% in October.
* Household energy costs and hotel prices also contributed to lower inflation.
* Economists had expected a slightly bigger fall in inflation, but the decrease is still seen as a positive sign.
* The Chancellor, Rachel Reeves, said she is determined to bring down prices and ease cost-of-living pressures, which is one of her main goals for the upcoming Budget.
* Inflation remains above the Bank of England's 2% target, but the next interest rate decision may focus on the longer-term impact of raising borrowing costs.
* The fall in inflation has raised hopes that prices have peaked and could pave the way for lower interest rates.
* Experts predict a December interest rate cut is now "nailed-on", but a lengthy delay until another cut is also possible.
* The upcoming Budget will be crucial in determining the future direction of inflation, with policies including tax rises and spending cuts potentially having an impact.
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