Inflation slows, setting the stage for a December rate cut

Martin Beck, Chief Economist | Economic Consulting and Analysis

UK inflation slowed in October for the first time since May, as energy and core price pressures cooled. With growth weakening and the upcoming Budget set to tighten fiscal policy, conditions are in place for a Bank of England interest rate cut in December - offering relief on borrowing costs and supporting consumer confidence. We expect two or three further rate reductions in 2026.