Inflation falls to two-year low but Exeter families say little has changed

Inflation has dropped to 3.6 per cent, but many Exeter households say little has changed, with food, fuel and heating costs still weighing heavily as winter arrives.

Official figures show inflation in the year to October has fallen to 3.6 per cent, the lowest level for two years. 

While this marks a significant slowdown from the peaks seen in 2022, prices are still rising, and many Exeter households say the cost of everyday essentials remains a strain.

Across the city, residents say the drop is welcome, however, many stress that rising costs have not disappeared. 

Lucy Porter, from Heavitree, said: “It’s good to hear inflation is dropping, but the weekly shop still feels expensive. It’s more that things aren’t getting worse as quickly now.”

St. Thomas resident, Ben Carter, shared a similar view: “I wouldn’t say life feels cheaper yet. But if this means prices stop jumping every month, that’s at least something.”

Others noted that energy bills remain a major strain: “I’m still paying far more for heating than I was a couple of years ago,” said Pinhoe resident Karen Mills. 

“A lower inflation rate doesn’t change that overnight,” she said.

Exeter MP Steve Race described the figures as positive for local residents: “It’s good news for everyone in Exeter that inflation is now the lowest for two years, after reaching a peak of 11 per cent under Liz Truss,” he said. 

“High inflation eats away at the pound in everyone’s pocket, and it only comes down through stable economics.”

He added: “The government is working to improve our public services, grow the economy and tackle the cost of living, while also bringing down the historically high levels of national debt left by the last Tory government – it’s tough and there’s much more to do, but that’s what will set our country and our communities up for success.”

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Local economists say that while prices are still rising, the slower pace could help ease pressure on household budgets heading into winter. 

Many Exeter families have faced sustained financial strain over the last two years as wages struggled to keep pace with rising costs.

Businesses across the city are also adjusting. Nexus Open Systems, a major Exeter-based tech firm, said the 3.6 per cent rate is influencing how organisations plan and invest.

A spokesperson for Nexus said: "At Nexus, we’re seeing the impact of the 3.6 per cent inflation rise reflected in the day-to-day decisions our clients are making. Many organisations are being far more deliberate with their budgets, prioritising investments that deliver clear efficiency gains or reduce operational pressure."

They added that companies are increasingly looking to technology to help them operate more efficiently: "What’s become increasingly important in this environment is having a strategic partner who can help you make the right calls.”

“We’re working closely with clients to guide where technology, particularly AI, can genuinely save time, reduce manual workload and unlock capacity, rather than becoming another cost line."

"While inflation adds pressure, it’s also prompting many South West organisations to modernise and streamline how they work. Our outlook is cautiously optimistic – businesses that embrace smarter, more efficient technologies are finding they can maintain momentum even in a tougher economic climate."

Kate Williams, the founder and director of Exeter-based KW Marketing, said the latest inflation figure continues to shape how both businesses and customers behave: “Running a business is tough right now, and this latest rise in inflation to 3.6 per cent certainly doesn’t make things any easier,” she told Exeter Today.

 “Customers are becoming more considerate in their spending, and brands are having to work a lot harder to convert the same sale.

“We’re supporting businesses to tighten their digital strategies, focus on the channels that actually drive revenue, and make every pound work harder.”

Kate added that Exeter’s close-knit business community is proving a strength: “Despite the challenges, I’m optimistic. Exeter’s business community is incredibly supportive, and tough climates tend to bring out the best partnerships. We’re all navigating this together.”

Economists say that while prices are still rising, the slower rate could help ease pressure on household budgets heading into winter and the festive season. For businesses, lower inflation may stabilise costs for goods and services, potentially encouraging more consistent spending.

Analysts say maintaining economic stability will be key to keeping inflation on its downward path, particularly as households continue to recover from previous spikes.