UK's consumer price inflation eases to 3.6 per cent in October

British inflation slowed last month for the first time since May, official figures showed on Wednesday, offering some relief to the government before next week's annual budget and boosting the chance of a December rate cut by the Bank of England.

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Consumer price inflation dropped to 3.68 in October from 3.88 in September, its joint-highest since January 2024, the Office for National Statistics said. The fall was in line with forecasts from both the BoE and economists polled by Reuters.

"With inflation now on what should be a sustained downward path, economic growth softening, and next week's budget likely to deliver a significant fiscal tightening, the conditions are in place for a BoE rate cut in December," Martin Beck, chief economist at WPI Strategy, said.

The BoE paused its quarterly pace of rate cuts earlier this month and finance minister Rachel Reeves has said she will seek to avoid tax and spending measures that might add to inflation in her annual budget on November 26.