UK Inflation in First Drop Since March Ahead of Reeves’ Budget

UK inflation fell for the first time in seven months, a sign price pressures are past their peak ahead of crucial decisions by the Bank of England and Chancellor of the Exchequer Rachel Reeves.

Consumer prices increased 3.6% in October compared with a year earlier, down from the 3.8% rise in September, the Office for National Statistics said on Wednesday. It was slightly higher than City economists’ expectations for inflation to ease to 3.5% but matched the BOE’s forecast.