UK inflation unchanged in August
By Abigail Townsend
Date: Wednesday 17 Sep 2025
(Sharecast News) - Inflation remained unchanged in August, official data showed on Wednesday, underpinned by higher food prices.
According to the Office for National Statistics, the consumer prices index was 3.8% in the 12 months to August, unchanged on July and in line with expectations. On a monthly basis, CPI rose by 0.3%, also in line with consensus.
However, the core inflation rate - which strips out the more volatile elements of energy, food, alcohol and tobacco - softened to 3.6% from 3.8%.
Grant Fitzner, chief economist at the ONS, said different price movements had offset each other during the month.
He continued: "The cost of airfares was the main downward driver, with prices rising less than a year ago following the large increase in July, linked to the timing of the summer holidays.
"This was offset by a rise in prices at the pump and the cost of hotel accommodation falling less than this time last year.
"Food price inflation climbed for the fifth consecutive month, with small increases seen across a range of vegetables, cheese and fish items."
Food prices soared 5.1% in August, up from 4.9% in July. It was the highest recorded rate since January 2024, although it is well below the peak seen in early 2023.
Including housing costs, inflation rose by 4.1% in the 12 months to August, down from 4.2% a month previously. Month-on-month CPIH rose 0.3%.
The Bank of England meets on Thursday to discuss interest rates. Already expected to leave the cost of borrowing unchanged, at 4%, today's data will likely strengthen that case.
The rate-setting Monetary Policy Committee is battling a loosening jobs market and sluggish economic growth alongside sticky inflation.
The BoE's long-term inflation target is 2%.
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