UK inflation holds for third consecutive month

The Office for National Statistics data showed that the consumer price index (CPI) remained unchanged in September, with the same reading that was reported in August and July.

Food inflation slowed for the first time since March, falling to 4.5% in the 12 months to September – down from 5.1% in August.

The ONS reported that food prices had fallen month on month for the first time since May 2024, dipping 0.2% last month compared to a 0.4% rise a year ago.

BRC director of insight Dr Kris Hamer said: “Headline inflation remained unchanged last month, as an easing of food price rises was countered by an increase in transport inflation, notably air fares. 

“Food inflation is expected to remain high into 2026 as inflationary pressures from the last Budget continue to filter through, something now being seen in the price of clothing and footwear. 

“With the cost of the weekly shop still significantly higher than last year and the prospect of another tax-raising Budget next month, today’s figures are unlikely to raise consumer spirits. Nonetheless, consumers will have been happy to see the price of key staples such as rice, bread and cereal fall on the month. 

Hamer urged Chancellor Rachel Reeves to tackle rising prices “head on” at next month’s Budget.

He added: “Retailers, already operating on tight margins, have been hit with £7 billion in additional taxes this year alone — costs they simply can’t absorb. The Government must use what levers it has to hold back the rising tide of inflation.

“Reform of business rates — delivering a meaningful cut for retailers with no shop paying more — would drive and help deliver better value for customers.”