Inflation rate slows to 3.6%, marking a four-month low

The latest inflation figures are the last to be released before next week’s Budget, as Good Morning Britain’s Richard Gaisford reports

Inflation in the UK dipped to 3.6% in October, falling to the lowest level in months following easing gas and electricity prices.

The rate of Consumer Prices Index (CPI) inflation fell from 3.8% in September, according to the Office for National Statistics (ONS).

This marks the lowest CPI rate since June this year, but above the 3.5% that most economists were forecasting for the month.

The figures come ahead of next week’s Budget, where the Chancellor is expected to unveil her economic strategy for the coming months.

Rachel Reeves said the latest inflation reading was “good news” for the UK.

“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 continued.

“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.”

A slower increase in gas and electricity prices was the biggest factor putting downward pressure on the overall inflation rate in October, the ONS said.

Ofgem raised the energy price cap by 2% in October, but this is significantly less than the 9.6% hike last year.

ONS chief economist Grant Fitzner said: “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.

“These were only 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.”

Responding to Wednesday’s figures, the Tories blamed Rachel Reeves’ last Budget for fuelling inflation.

Shadow chancellor Sir Mel Stride said: “Inflation has been above target every single month since Labour’s last Budget, leaving working people worse off.

“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.