Inflation in England Drops After 7 Months: October Report

UK Inflation Sees Decline in October

According to the latest data from the UK Office for National Statistics, consumer prices increased by 3.6% in October. This marks a significant drop following the 3.8% increase seen in the previous month.

Fell Below Expectations

Analysts had expected October's inflation figures to decline to 3.5%. However, the data for October revealed that inflation was rising at a slower pace than anticipated.

Impact of Energy Prices

The decline in energy prices played a significant role in slowing inflation. Month-on-month inflation increased by 0.4% in line with forecasts. Core inflation increased by 3.4% year-on-year; the previous month, this figure was recorded at 3.5%.

Service Inflation and Central Bank Expectations

The service inflation closely monitored by the Bank of England decreased to 4.5%, providing a positive development. This data supports expectations that the Central Bank will lower interest rates at its next meeting scheduled for December 18.