Transport made the largest upward contribution to the monthly change in CPI annual rates.
Core CPI (excluding energy, food, alcohol and tobacco) rose by 3.5 per cent YoY in the month, down from a 3.6-per cent YoY rise in August. The CPI goods annual rate rose slightly from 2.8 per cent to 2.9 per cent.
The CPI for clothing and footwear rose by 0.5 per cent YoY and 2.4 per cent month on month in September.
The country’s CPI inflation rate of 3.8 per cent was higher than the inflation rates for Germany (2.4 per cent), France (1.1 per cent) and the European Union (2.6 per cent) in September 2025. The last time the UK rate was lower than the EU rate was December 2024.
With the International Monetary Fund warning that UK inflation will be the highest in the G7, the Chancellor of the Treasury must use the upcoming budget to tackle rising prices head on, said Kris Hamer, director of insight at the British Retail Consortium.
“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,” he added in a statement.
ALCHEMPro News Desk (DS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!