UK Inflation Rate Slows as Expected
The UK's annual inflation rate eased to 3.6% in October 2025, the lowest level in four months, down from 3.8% recorded in each of the previous three months. The figure came in line with expectations from both the Bank of England and market analysts. Prices slowed for housing and utilities (5.2% vs 7.3%), namely gas (2.1% vs 13%) and electricity (2.7% vs 8%) due to a change in the Office of Gas and Electricity Markets energy price cap in October. Smaller price increases were also seen for restaurants and hotels (3.8% vs 3.9%), services (4.5% vs 4.7%) and clothing and footwear (0.3% vs 0.5%). On the other hand, inflation for transportation was unchanged at 3.8% while it accelerated for food and non-alcoholic beverages (4.9% vs 4.5%) and recreation and culture (2.9% vs 2.7%). Compared to the previous month, the CPI rose 0.4%, following a flat reading in September and matching forecasts. Meanwhile, annual core inflation dropped to a six-month low of 3.4%.(asd)
Source: Trading Economics
