MNI BRIEF: UK Inflation Slows In October

UK CPI slowed to 3.6% year-on-year in October, down from 3.8% in September, the Office for National Statistics said Wednesday.

Core CPI rose by 3.4%, down from 3.5% in September; while the CPI goods annual rate fell from 2.9% to 2.6%. CPI services annual rate fell to 4.5% from 4.7%. Housing and household services made the largest downward contribution to the monthly change in both CPIH and CPI annual rates; food and non-alcoholic beverages made the largest offsetting upward contribution.

Producer input prices rose by 0.5% in the year to October 2025, down from a revised rise of 0.7% in the year to September. Producer output (factory gate) prices rose by 3.6% in the year to October 2025, up from a revised rise of 3.5% in the year to September.

“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. The costs of hotels was also a downward driver, with prices falling this month, ONS Chief Economist Grant Fitzner said. (see MNI INTERVIEW: UK Consumer Savings Still Drag on Economy- ONS )