The October CPI reading was down from 3.8 percent recorded in September, the statistics body reported. The September, August and July figures were the joint-highest since January 2024, when the rate was 4 percent, according to the ONS.

It said housing and household services made the largest downward contribution to the change in CPI annual rates, while food and non-alcoholic beverages made the largest upward contribution.

The easing of the inflation rate in October was driven mainly by gas and electricity prices, and the cost of hotels, said ONS chief economist Grant Fitzner.

The annual inflation rate for food and non-alcoholic beverages was 4.9 percent in October, up from 4.5 percent in September. On a monthly basis, food and non-alcoholic beverages prices rose by 0.5 percent in October, compared with a rise of 0.1 percent a year ago, the data showed.

Food inflation edged back closer to 5 percent, after some respite in September. This will be unwelcome news for consumers just a week before the Budget, said Kris Hamer, director of insight at the British Retail Consortium. "With prices still high and consumers feeling the pinch, the Budget is a crucial opportunity to alleviate some of the price pressures bearing down on the industry," he added. 

KPL