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, adding weight to expectations the Bank of England may move to 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.
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