UK Inflation Eases to 3.6% in October

UK inflation eased to 3.6 percent in October, marking the first decline since May and offering some relief to households and businesses ahead of the government's upcoming budget.

The Office for National Statistics reported Wednesday that the Consumer Prices Index, which tracks the annual change in prices for goods and services, fell from 3.8 percent in September. This rate, the lowest since June, came in slightly above economists' median forecast of 3.5 percent but confirmed expectations that inflation had peaked the previous month. The drop reflects a broader slowdown in price pressures, though the figure remains well above the Bank of England's two percent target, the 13th consecutive month it has exceeded that level.

The easing was primarily driven by smaller increases in gas and electricity prices compared to the previous year. Regulator Ofgem raised its energy price cap by two percent in October, a far milder adjustment than the 9.6 percent hike a year earlier. ONS chief economist Grant Fitzner noted that these changes in the cap contributed the most to the downward trend. Declining hotel prices also helped pull the overall rate lower. However, these factors were partly...