Total Financial Wellbeing

UK inflation rate remains at 3.8%

22 Oct 2025

Data published by the Office for National Statistics (ONS) has revealed that the rate of inflation held steady at 3.8% in the year to September.

Prices for petrol and airfares helped to increase the inflation rate, the data showed. Prices for food and non-alcoholic drinks fell for the first time since May 2024.

September's figure of 3.8% marks the third month in a row that the rate remains unchanged, and is above the Bank of England's 2% target. However, the ONS found that prices are rising a little more slowly than it had previously expected. Experts had anticipated a rise in the rate of inflation to 4% in the year to September.

Commenting on the data, Chancellor Rachel Reeves said: 'For too long, our economy has felt stuck, with people feeling like they are putting in more and getting less out.

'That needs to change. All of us in government are responsible for supporting the Bank of England in bringing inflation down. I am determined to ensure we support people struggling with higher bills and the cost of living challenges, deliver economic growth and build an economy that works for, and rewards, working people.'

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