Inflation comment from Phoebus Software

19 November 2025

Richard Pike, chief sales and marketing officer, on today’s last CPI figures from the ONS which shows inflation slowed to 3.6% in October.

“After a year of increasing prices, it looks like inflation is finally starting to slow down, which will come as a relief to under-pressure households.

“It’s a much-needed pre-Budget boost for Rachel Reeves, who is looking for some rays of light on the economy amid the recent gloom. We’re all eagerly awaiting to see what she can pull out of the hat in next week’s budget to bring the economy back on track, with the Government’s position changing almost daily.

“The drop in inflation, along with a cooling labour market and the prospect of fiscal tightening in the budget, strengthens the case for the Bank of England to deliver an early Christmas present for borrowers and cut the base rate in December.

“This would help alleviate affordability pressures, unlock greater borrowing potential and support increased mortgage activity – providing a much-need boost for the market.”