UK CPI inflation in October 2025 slowed to 3.6% compared with 3.8% in September.

It was in line with economists’ expectations, as polled by Reuters beforehand, but slightly higher than the 3.5% Bloomberg consensus. Earlier in the year, September was expected to be the peak for CPI inflation, and October’s slowdown appears to suggest that this is the
case. October’s slowdown in inflation was primarily due to a smaller rise in gas and electricity prices compared with a year ago, as well as a fall in hotel prices, according to the ONS.

Measures of underlying price pressures also slowed in line with, or faster than, expected. Core prices slowed from 3.5% in September to 3.4% in October, whilst services inflation, which the Bank of England uses as its indicator of underlying inflation, eased from 4.7% to 4.5%, which is slightly lower than the 4.6% expected.

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