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United Kingdom Inflation August 2025

United Kingdom: Inflation remains at joint-highest level since January 2024 in August

Latest reading: The UK’s annual inflation rate held steady at 3.8% in August, unchanged from July and the highest level in January 2024. The reading was in line with expectations but nearly double the Bank of England’s 2.0% target. Inflation eased in transport, with air fares posting the largest downward contribution. Lower inflation rates were also recorded for services—a closely watched metric by the Bank of England—and clothing and footwear. By contrast, inflation picked up in food and furniture.

Meanwhile, core inflation dipped from 3.7% to 3.6% in August.

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