UK Inflation Falls to 2.3% — Lowest Level Since 2021
Date: November 9, 2025
Author: London Business Desk
The United Kingdom’s annual inflation rate has fallen to 2.3% in October — the lowest since 2021 — driven by falling energy prices and a slowdown in food cost increases. The latest figures, released by the Office for National Statistics (ONS), signal a potential turning point in the country’s ongoing cost-of-living crisis.
Energy and Food Prices Drive Decline
According to the ONS, household energy bills fell by an average of 9% compared to the same period last year. Food inflation, which peaked at over 19% in early 2023, has now dropped to under 5%, providing some relief to families.
Chancellor Rachel Reeves said the numbers were “a sign that the government’s stability plan is working,” but warned that “the job is not done” as housing and transport costs remain high.
Bank of England Reaction
The Bank of England is expected to review its current interest rate of 5.25% at its next meeting. Analysts predict a potential rate cut early next year if inflation continues to decline.
“We are cautiously optimistic that inflation is returning to target levels, but we need to see sustained stability before easing policy,” said Governor Andrew Bailey.
Public Response
Consumers across the UK have expressed cautious optimism. “Groceries are finally starting to feel affordable again,” said Sarah Mitchell, a shopper in Manchester. However, many renters say property costs continue to rise, offsetting gains in other areas.
Outlook for 2026
Economists forecast that inflation could stabilize around 2% in early 2026, with slower growth in wages and consumer spending expected to follow. The government’s fiscal policy and global oil prices remain key factors influencing future trends.
0 Comments