UK inflation remains elevated at 3.8 pct in September: ONS-Xinhua

UK inflation remains elevated at 3.8 pct in September: ONS

Source: Xinhua| 2025-10-23 01:20:15|Editor: huaxia

LONDON, Oct. 22 (Xinhua) -- Britain's consumer price index (CPI) rose by 3.8 percent year on year in September 2025, remaining at the highest rate since January 2024, data from the Office for National Statistics (ONS) showed Wednesday.

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 the largest upward drivers for inflation growth in September were petrol prices and airfares, while lower prices for recreation and culture, including live events, offset the growth.

The cost of food and non-alcoholic drinks also fell for the first time since May 2024.

However, Kris Hamer, director of insight at the British Retail Consortium, said that food inflation is expected to remain high into 2026 as inflationary pressures from the last Budget continue to filter through. These pressures are currently reflected in prices for clothing and footwear.

"With the cost of the weekly shop still significantly higher than last year and the prospect of another tax-raising Budget next month, Wednesday's figures are unlikely to raise consumer spirits," Hamer added.

Britain's inflation rate was higher than that for the European Union (EU), which stood at 2.6 percent, said the ONS. The last time the rate was lower than the EU rate was in December 2024.

"Sticky inflation has been in danger of becoming a uniquely British disease," said David Bharier, head of research at the British Chambers of Commerce (BCC).

Although the September CPI was lower than expected, the reintroduced producer price data showed factory gate prices rising by 3.4 percent, hinting that cost pressures remain in the pipeline, particularly for food and manufacturing, Bharier said.

The BCC's latest survey data has shown that concerns over inflation have been rising again, becoming the second-biggest issue for firms after taxation.

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