Inflation falls to 3.6% in October despite rising food prices
Core CPI - which excludes energy, food, alcohol and tobacco - eased to 3.4% in October from 3.5% the previous month
Register to get 1 free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Inflation eased slightly to 3.6% in October, down from 3.8% in September, as housing and household services helped offset a rise in food prices, according to the latest figures from the Office for National Statistics (ONS).
Gas and electricity prices rose more slowly than a year earlier following Ofgem’s latest energy price cap adjustment. Gas increased by 2.1% in the 12 months to October, compared with 13.0% in September, while electricity rose by 2.7% after an 8.0% rise the previous month.
Restaurants and hotels also weighed on the annual rate. The biggest downward effect came from accommodation services, where monthly prices fell by 2.2%, compared with a 0.2% decline a year earlier.
Story Stream: More on Inflation
- Consumer confidence drops to four-month low ahead of Autumn Budget
- UK economy slows to 0.1% in third quarter
- Supermarket sales growth slows ahead of Black Friday
- Grocery inflation eases to 4.7% as supermarkets step up Xmas promotions
- Retail sales slow in October as shoppers hold off for Black Friday
Transport inflation remained unchanged at 3.8% in the 12 months to October. Air fares rose by 1.7% between September and October, far below the 6.3% increase recorded a year earlier. The downward effect came mainly from European routes.
Motor fuels provided the main offsetting upward pressure, with petrol rising by 0.7 pence per litre on the month and diesel by 1.2 pence. Petrol averaged 134.7 pence per litre in October, up from 134.0 pence a year earlier, while diesel stood at 143.0 pence, up from 139.1 pence.
Food and non-alcoholic beverages delivered the largest upward contribution to the CPI. Prices in the division rose by 4.9% in the year to October, up from 4.5% in September. Monthly food inflation reached 0.5%, compared with a 0.1% rise a year earlier.
Core CPI – which excludes energy, food, alcohol and tobacco – eased to 3.4% in October from 3.5% the previous month.
Commenting on today’s inflation figures for October, ONS chief economist Grant Fitzner 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 energy price cap. The costs of hotels was also a downward driver, with prices falling this month.
“These were only partially offset by rising food prices, following the dip seen in September. The annual cost of raw materials for businesses continued to increase, while factory gate prices also rose.”
