UK inflation eased in October, with headline CPI slowing from 3.8% yoy to 3.6%, just above the market’s 3.5% forecast. Core inflation (excluding energy, food, alcohol and tobacco) matched expectations at 3.4% yoy, down from 3.5% previously.
Goods inflation cooled, slipping from 2.9% yoy to 2.6%, while services inflation—still the stickiest component—eased from 4.7% to 4.5%.
On a monthly basis, headline CPI rose 0.4% mom.
The figures point to steady, gradual deceleration rather than sharp disinflation, leaving the BoE’s December cut narrative largely intact. Markets are unlikely to adjust pricing meaningfully until the Autumn Budget clarifies the fiscal stance. For now, the data reinforces a picture of easing, but not yet subdued, domestic price pressures.
 matched expectations at 3.4% yoy, down from 3.5% previously.){kind=link}