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UK inflation holds steady at 3.8% in September beating forecasts

22nd Oct 2025 07:26

(Alliance News) - UK inflation remained steady in September, with consumer prices rising at the same annual rate as in August, figures from the Office for National Statistics showed Wednesday.

The consumer prices index rose 3.8% year-on-year in September, unchanged from August, matching the joint-highest rate since January. The figure came below the FXStreet-cited consensus of a 4.0% rise.

On a monthly basis, prices were flat, after a 0.3% increase in August.

The broader CPIH measure, which includes owner-occupiers' housing costs, also remained unchanged on an annual basis, rising 4.1%. It rose 0.1% on the month, slowing from a 0.3% rise in August.

Food and non-alcoholic beverage inflation eased to 4.5% from 5.1% in August, while housing and household services inflation edged down to 5.9%.

Core inflation, which excludes energy, food, alcohol, and tobacco, cooled slightly. Core CPI fell to 3.5% from 3.6% in August, while core CPIH slipped to 3.9% from 4.0%.

Producer input prices rose by 0.8% annually, up from a rise of 0.2% in the year to August. The figure came above the FXStreet-cited consensus of a 0.3% rise.

The last time the ONS had published PPI data was in February, covering the month of January. It had delayed releases due to a data issue.

Factory gate prices rose 3.4% year-on-year in September, up slightly from 3.1% in August, while input costs rose 0.8%, recovering from a 0.2% gain in the previous month.

Over the third quarter, services producer prices rose 2.1% annually, compared with a 1.7% rise in the second quarter.

The retail prices index fell 0.4% month-on-month in September but was up 4.5% year-on-year.

By Eva Castanedo, Alliance News reporter

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Copyright 2025 Alliance News Ltd. All Rights Reserved.

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