The CPI inflation rate fell from 3.8% in September to 3.6% in October, figures from the Office for National Statistics show.
The reduction means some are predicting a Bank of England base rate cut in December.
Sarah Coles, head of personal finance, Hargreaves Lansdown, said: “If you’re wondering what that warm breeze is, it’s the entire country heaving a sigh of relief at the news that inflation has fallen for the first time since March.
“The Bank of England had forecast it had peaked in September and prices are following the script. It should help ease the pressure on households, the Bank of England and mortgage borrowers. Savers may see rates ease a little, but it won’t take much effort to stay ahead of inflation.”
The inflation rate was pulled down by a sharp rise a year earlier, pushing inflation of electricity prices to 2.7% and gas prices to 2.1%.
Inflation of food prices stand at an eye-watering 4.9%, following a monthly increase of 0.5%.
Striking annual rises include beef and veal up 27%, whole milk up 15.5% and butter at 14.3%.
Cattle farmers are still feeling the financial impacts of a poor grass harvest, as well as increased labour costs throughout the production and sales process.
Coles added: “We’re reaping the spoils of a mortgage price war, with the best two-year fixed-rate deals closing in on 3.5%.
“The banks were already broadly factoring in today’s news, so it won’t move the dial in itself. However, competition is so fierce we can expect the banks to keep cutting the rates in an effort to stay on top.”
