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Inflation remains unexpectedly static as food prices ease

Western Mail

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October 23, 2025

INFLATION unexpectedly remained steady last month as upward pressure from petrol prices was offset by easing food costs, according to official figures.

- HENRY SAKER-CLARK

The rate of Consumer Prices Index (CPI) was 3.8% in September, remaining at the same level as both July and August, the Office for National Statistics said.

Economists had predicted a reading of 4% for the month.

The weaker-than-expected rise will provide a boost for the Bank of England in its bid to bring inflation back down to its 2% target rate.

The Bank of England had previously predicted that UK inflation would peak around September before steadily falling back down.

The inflation figure will also be beneficial for Chancellor Rachel Reeves, with it pointing to a smaller-than-expected rise in the cost of living for households and also a weaker-than-expected increase in many welfare payments next year.

However, the Chancellor said yesterday: "I am not satisfied with these numbers. For too long our economy has felt stuck, with people feeling they are putting in more and getting less out.

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