The Consumer Prices Index (CPI) rose by 3.6% in the 12 months to October 2025, down from 3.8% in September, data published by the Office for National Statistics on Wednesday (19 November) shows.
On a monthly basis, CPI rose by 0.4% in October 2025, compared with a rise of 0.6% in October 2024, the statistics body said.
The slowing in the rate into October 2025 reflected downward contributions from six divisions, offset by upward contributions from four divisions.
The largest downward contributions were from the housing and household services, and restaurants and hotels divisions. The largest offsetting upward contribution came from the food and non-alcoholic beverages division.
“Inflation eased in October, driven mainly by gas and electricity prices, which increased less than this time last year following changes in the Ofgem energy price cap,” said ONS Chief Economist Grant Fitzner.
The costs of hotels were also a downward driver, with prices falling this month, he said.
“These were partially offset by rising food prices, following the dip seen in September. The annual cost of raw materials for businesses continued to increase, while factory gate prices also rose.”
The drop in inflation was welcomed by Chancellor Rachel Reeves, who is preparing to deliver her much-anticipated Budget next week.
“This fall in inflation is good news for households and businesses across the country, but I’m determined to do more to bring prices down,” she said.
“That’s why at the Budget next week I will take the fair choices to deliver on the public’s priorities to cut NHS waiting lists, cut national debt, and cut the cost of living.”
However, the Tories were quick to blame Rachel Reeves’ last Budget for fuelling inflation.
“Inflation has been above target every single month since Labour’s last Budget, leaving working people worse off,” said Shadow Chancellor Sir Mel Stride.
“Labour’s last Budget hiked borrowing and taxes, stoking the inflation now hitting families. If Labour had any backbone, they would adopt our £47 billion savings plan and our golden economic rule next week to ease inflationary pressures.”
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