“Inflation eased in October, driven mainly by gas and electricity prices, which increased less than this time last year, following changes in the Ofgem energy price cap,” said ONS chief economist Grant Fitzner.
Household energy prices, which are capped by the regulator, rose in the year to October. But the 2% rise in the cap was significantly less than the 9.6% hike last year.
The ONS said another factor pulling back inflation was hotel prices. Hotel rates typically fall between the summer and Christmas, but this year they dipped more than last year.
However, fuel prices have risen, affecting drivers and the cost of deliveries.
“The annual cost of raw materials for businesses continued to increase, while factory gate prices also rose,” Mr Fitzner added.
The Food and Drink Federation, representing food manufacturers said food price inflation was due to rising costs for ingredients and energy, as well as “regulatory costs” including packaging taxes and rising National Insurance.
