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Home » UK inflation remains at 3.8% in August as food costs grow | UK News
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UK inflation remains at 3.8% in August as food costs grow | UK News

By uk-times.com17 September 2025No Comments1 Min Read
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Inflation in the year to August remained at 3.8%, according to official figures, after food costs continued to rise.

The pace of price rises matched the inflation rate in July but as some costs such as airfares rose at a slower rate, food was more expensive with cheese, fish and vegetable prices all rising.

The data emerged as the Bank of England’s Monetary Policy Committee meets to discuss interest rates ahead of an announcement on Thursday.

Inflation remains above the Bank’s 2% target but the central bank is not expected to cut borrowing costs.

The Office for National Statistics, which publishes the figures, said inflation in the UK was “significantly higher” than the estimates for large European economies such as France and Germany.

In August, France’s inflation was 0.8% while Germany recorded price growth of 2.1%.

Yael Selfin, chief economist at KPMG UK, said Britain had become “an outlier in recent months on inflation compared to other major economies”.

She said: “Since April, the rise in inflation has been driven largely by domestic policy choices, including the increase in employers’ National Insurance Contributions.

“These higher costs have been passed on by businesses to consumers, feeding through into higher headline inflation.”

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