(MENAFN) Britain’s consumer price index (CPI) increased by 3.8 percent year-on-year in September 2025, maintaining its peak level not seen since January 2024, according to data released Wednesday by the Office for National Statistics (ONS).

The inflation rate for September, along with figures from August and July, marked the joint-highest levels since January 2024, when the CPI stood at 4 percent, the ONS reported.

The agency identified rising petrol prices and airfares as the main contributors to September’s inflation uptick. However, declines in costs related to recreation and culture, including live events, helped partially offset these increases.

Notably, prices for food and non-alcoholic beverages dropped for the first time since May 2024.

Despite this, Kris Hamer, director of insight at the British Retail Consortium, warned that food inflation is anticipated to remain elevated into 2026 as the effects of inflationary pressures from the previous Budget continue to impact prices—particularly in 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, Wednesday's figures are unlikely to raise consumer spirits," Hamer said.

The UK’s inflation rate remains above that of the European Union, which recorded a 2.6 percent increase, per the ONS. December 2024 was the last time the UK’s inflation rate fell below the EU’s.

David Bharier, head of research at the British Chambers of Commerce (BCC), commented, "Sticky inflation has been in danger of becoming a uniquely British disease."

Though the September CPI was below forecasts, newly released producer price data showed factory gate prices climbing 3.4 percent, indicating ongoing cost pressures, especially in food and manufacturing sectors, Bharier noted.

The BCC’s latest survey revealed that inflation concerns are intensifying again, becoming the second most pressing issue for businesses after taxation.

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