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Consumer price indexes

Britain's Inflation Rate Remains High, Hitting Highest Rate Since January 2024

Strategic Insights

— 2 min read

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. The September, August, and July figures were the joint-highest since January 2024, when the rate was 4 percent. Despite lower prices for recreation and culture, including live events, the largest upward drivers for inflation growth in September were petrol prices and airfares. Meanwhile, the cost of food and non-alcoholic drinks fell for the first time since May 2024.

Key Takeaways:

  • Britain's CPI rose by 3.8 percent year on year in September 2025, remaining at the highest rate since January 2024.
  • The September, August, and July figures were the joint-highest since January 2024, when the rate was 4 percent.
  • Petrol prices and airfares were the largest upward drivers for inflation growth in September.
  • The cost of food and non-alcoholic drinks fell for the first time since May 2024.
  • Food inflation is expected to remain high into 2026 as inflationary pressures from the last Budget continue to filter through.
  • Britain's inflation rate was higher than that for the European Union (EU), which stood at 2.6 percent, according to the ONS.
  • Factory gate prices rose by 3.4 percent, hinting that cost pressures remain in the pipeline, particularly for food and manufacturing.
  • Concerns over inflation have been rising again, becoming the second-biggest issue for firms after taxation, according to the British Chambers of Commerce (BCC).
  • David Bharier, head of research at the BCC, said that sticky inflation has been in danger of becoming a uniquely British disease.

Statistics:

  • CPI rose by 3.8 percent year on year in September 2025.
  • September, August, and July figures were the joint-highest since January 2024, when the rate was 4 percent.
  • Petrol prices and airfares contributed 1.2 percent and 0.6 percent, respectively, to the 3.8 percent inflation growth in September.
  • The cost of food and non-alcoholic drinks fell by 0.1 percent in September, the first fall since May 2024.
  • Britain's inflation rate was 1.2 percentage points higher than the EU rate in September 2025.
  • Factory gate prices rose by 3.4 percent in September 2025.
  • Concerns over inflation have risen to become the second-biggest issue for firms after taxation, according to the BCC.

Sources:

  • Office for National Statistics (ONS)
  • British Retail Consortium
  • British Chambers of Commerce (BCC)
  • People's Republic of China -- State Council News

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