The UK inflation rate was lower than expected at 3.8%.
The annual inflation rate in the UK remained steady at 3.8% in September 2025, unchanged from two months earlier, below expectations of 4%. Transportation prices increased 3.8% (compared with 2.4% in August), primarily due to higher motor fuel and airline ticket costs, and to a lesser extent, vehicle maintenance and repairs. Prices also increased rapidly in restaurants and hotels (3.9% vs. 3.8%) and clothing and footwear (0.5% vs. 0.2%). In contrast, inflation slowed in the entertainment and culture sector, mainly live music events (3.2% vs 2.7%), food and non-alcoholic beverages (5.1% vs 4.5%); This is the first slowdown since March and partly reflects a further increase in sales and discounting activity in September 2025 compared to the same month last year. Price growth also slowed slightly in housing and utilities (7.3% vs 7.4%). Services inflation was unchanged at 4.7%. Calculated on a monthly basis, CPI did not change. Annual core inflation unexpectedly fell from 3.6% to 3.5%.
