UK inflation rate falls to 3.6%
By Abigail Townsend
Date: Wednesday 19 Nov 2025
(Sharecast News) - The rate of inflation slowed slightly last month, official data published on Wednesday showed, adding weight to expectations the Bank of England may trim interest rates in December.
According to the Office for National Statistics, the consumer prices index rose by 3.6%, down from 3.8% in September.
Core inflation, which strips out more volatile energy, food, alcohol and tobacco prices, rose by 3.4%, down from 3.5% and in line with expectations.
The BoE has cut rates just three times this year, to 4%, despite sluggish economic growth, as it battles persistently sticky inflation.
CPI remains well above the BoE's long-term target of 2%. However, the rate-setting Monetary Policy Committee had expected it to reach 4% before falling back.
It also signalled at November's meeting that more cuts would be on the cards if inflationary pressures continued to ease.
Services inflation fell to 4.5% from 4.7% in October.
However, food and non-alcoholic drink prices picked back up. They rose 4.9% in October, up from 4.5% a month previously.
Grant Fitzner, chief economist at the ONS, 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 price cap.
"The costs of hotels was also a downward driver.
"These were only partially offset by rising food prices, following the dip seen in September.
"The annual cost of raw materials for businesses continue to increase while factory gate prices also rose."
Including housing costs, inflation rose by 3.8% in the 12 months to October, down from 4.1% in September.
Matt Swannell, chief economic advisor to the EY Item Club, said: "Inflation has how passed its peak; headline inflation is expected to remain at similar levels over the final months of this year before drifting downwards through next year.
"The minutes of November's MPC meeting intimated that tighter fiscal policy and further progress on inflation in the two release before the December Bank Rate decision would be key to whether there will be a majority in favour of a rate cut.
"Today's data fulfil one of those criteria and keeps the MPC on track to deliver a 25 basis points cut next month."
Danni Hewson, head of financial analysis at AJ Bell, said: "There is of course a rather large elephant in the room.
"If Rachel Reeves' Budget includes policies which would be seen as inflationary, then rate setters might decide they need more time to see exactly how the economy deals with the chancellor's measures.
"It's also notable that the ONS points to a rise in factory gate prices, as many producers as well as retailers seek to offset costs...such as the increase to employer National Insurance payments."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN