The Consumer Price Index (CPI) rose by 3.8% in the 12 months to September, unchanged from August.

The figures released by the Office for National Statistics (ONS) today (22 October) reveal the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 4.1% during the same period.

“Transport made the largest upward contribution to the monthly change in both CPIH and CPI annual rates. Recreation and culture, and food and non-alcoholic beverages made the largest offsetting downward contributions,” said the ONS report.

The 12-month inflation rate for food and non-alcoholic beverages was 4.5% in September 2025, down from 5.1% in August.

“This was the first time since March 2025 that the annual rate has slowed,” said the ONS.

“On a monthly basis, food and non-alcoholic beverages prices fell by 0.2% in September 2025, compared with a rise of 0.4% a year ago. This was the first time since May 2024 that prices have fallen on the month.”

Pieter Reynders, partner at global management consultants McKinsey & Company, said: “Inflation continues its zig zag path, holding steady at 3.8%, but remains significantly above the 2% target. Core inflation however was slightly below last month’s figure at 3.5%, which is a small but welcome step in the right direction.

“Food inflation continues to outstrip overall CPI at 4.5%, though that’s down from 5.1% last month, consumers will still be noticing increased costs in their weekly shop, with transport costs, including motor fuels and airfares, also adding to household strain.”

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