UK inflation holds steady at 3.8% in August

Business Sep 17, 2025

Inflation in the UK stayed at 3.8% in August 2025, holding steady at its highest point since January 2024 and well above the Bank of England's 2% goal.
Everyday costs—especially food, restaurants, and hotels—keep climbing, making it harder for people to stretch their paychecks.

Rents are rising fast

If you rent privately, you're likely feeling the impact of rising costs.
This raises real concerns about whether young people can afford to keep up with housing costs.

Interest rates and budget talks

With inflation stubbornly high, most expect the Bank of England to keep interest rates at 4%.
All eyes are on Chancellor Rachel Reeves as she preps for November's budget—with lots of talk about possible tax changes as everyone waits for prices to finally cool off.