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Inflation has dropped to 3.6% with UK households being warned it is the "calm before the storm" of the Autumn Budget.

On November 26, Chancellor Rachel Reeves will outline the Labour Party Government's second budget, with the banks and Treasury making moves ahead of it.

The Consumer Prices Index (CPI) rose by 3.6% in the 12 months to October 2025, down from 3.8% in September, according to official data published today .

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On a monthly basis, CPI rose by 0.4% in October 2025, compared with a rise of 0.6% in October 2024.

Housing and household services made the largest downward contribution to the monthly change in both CPIH and CPI annual rates, food and non-alcoholic beverages made

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