The decline in the consumer prices index (CPI) offers some relief for the government and the Bank of England amid a softening economic outlook, News.Az reports, citing foreign media.
The Office for National Statistics noted that inflation had held steady at 3.8% throughout July, August, and September before the October slowdown.
A slower increase in gas and electricity prices was the biggest factor putting downward pressure on the overall inflation rate in October, the ONS said. That was alongside hotels, where monthly prices fell by 2.2%, compared with a fall of 0.2% a year ago.
Ofgem raised the energy price cap by 2% in October, but that was significantly less than the 9.6% hike last year.
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.
Core inflation, which measures price rises without volatile food and energy costs, fell from 3.5% to 3.4%.
Food and drink inflation remains high at 4.9%, with the BoE expecting it to reach a peak of 5.3% next month. Food and non-alcoholic drinks increased 4.9%, with bread and cereals leading a rise in prices, up 0.02 percentage points.
Services prices inflation, which is watched closely by the BoE, fell to 4.5% in October from 4.7% in September
Chancellor Rachel Reeves has indicated that fiscal caution will shape her autumn budget, saying she will seek to avoid tax and spending decisions that might “add to inflation” when she delivers the statement on 26 November.
In a statement, Reeves said: "This fall in inflation is good news for households and businesses across the country, but I’m determined to do more to bring prices down.
"That’s why at the budget next week I will take the fair choices to deliver on the public’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living."
The central bank, which earlier this month suggested that price pressures had probably peaked, has kept open the prospect of a post-budget interest rate cut in December as policymakers grow more anxious about the economy’s underlying strength.
