Inflation across the United Kingdom has taken a significant step down, easing to 3.6% in October 2025, according to the latest official data. This marks the lowest level recorded since June, offering a glimmer of relief for households grappling with the ongoing cost of living crisis.
The primary driver behind this welcome decline was a substantial slowdown in the rate of energy bill increases. While gas and electricity costs did rise by 2% in October following an adjustment to the Ofgem price cap, this was a far cry from the dramatic 9.6% surge witnessed in October 2024.
Food Shop Squeeze Intensifies
However, the picture is not uniformly positive for British consumers. The respite from energy costs was partially offset by a sharp uptick in food inflation. The annual rate for food and non-alcoholic drinks climbed to 4.9% in October, up from 4.5% in September.
On a monthly basis, food prices increased by 0.5%. Grant Fitzner, the chief economist at the Office for National Statistics (ONS), confirmed the trend, stating, "These were partially offset by rising food prices, following the dip seen in September."
Where Your Money Isn't Stretching as Far
A detailed breakdown from the ONS reveals a worrying surge in the cost of numerous everyday essentials. Several categories saw particularly sharp reversals from price falls in September to significant increases in October.
Notable items where inflation jumped include:
- Margarine and other vegetable fats: September up 3.7%, October up 8.4%
- Edible ices and ice cream: September up 2.3%, October up 7.6%
- Whole milk: September up 12.0%, October up 15.5%
- Cleaning equipment: September down 7.5%, October up 4.0%
- Breakfast cereals: September up 2.6%, October up 4.9%
- Crisps: September up 1.8%, October up 4.2%
Areas of Consumer Relief
Amid the rising food costs, there were several key areas where price pressures showed clear signs of easing, providing some balance to the household budget.
Items where inflation has eased significantly:
- Gas: September up 13.0%, October up 2.1%
- Electricity: September up 8.0%, October up 2.7%
- Butter: September up 17.5%, October up 14.3%
- Passenger air travel: September up 5.5%, October up 0.9%
- Hotels and similar accommodation: September up 2.7%, October up 0.1%
It is crucial for consumers to understand that a falling inflation rate does not mean prices are decreasing. Instead, it indicates that prices are still rising, but at a slower pace than before. The overall inflation figure of 3.6% remains substantially above the Bank of England's 2% target, indicating that the economic pressure on UK households is far from over.
