Rachel Reeves hints there will be budget measures to push down prices and Bank of England is likely to act

Drop in October’s annual rate raises hopes of interest rate cut after Rachel Reeves’s tax and spending statement

Chancellor Rachel Reeves will be keeping a close eye on inflation data ahead of her autumn budget, due next Wednesday.

Economists polled by Reuters had expected a rate of 3.6% in the twelve months to October, down from 3.8% in September.

Household services contributed the biggest decline towards overall falling inflation

Prices have been rising more slowly in the twelve months to October but food prices bucked the trend.

Rachel Reeves hints there will be budget measures to push down prices and Bank of England is likely to act