UK inflation stays at 3.8% as food price rises slow for first time since March – business live

TITLE: UK Inflation Holds Steady at 3.8% Amid Easing Food Price Pressures

Inflation Stability Signals Potential Economic Shift

Britain’s inflation rate remained unchanged at 3.8% in September, defying economist predictions of an increase to 4%, as food price inflation showed its first signs of moderation since March. The latest data from the Office for National Statistics reveals a potentially significant turning point in the UK’s economic landscape, with core inflation—excluding volatile food and energy components—dipping to 3.5% from 3.6% in August.

Inflation Stability Signals Potential Economic Shift
Food Price Relief Emerges After Prolonged Pressure
Policy Implications and Government Response
Global Commodity Markets Show Volatility
Industrial and Business Sector Implications
Looking Ahead: Monetary Policy Considerations

Food Price Relief Emerges After Prolonged Pressure

In a development that will bring relief to households and policymakers alike, food prices declined by 0.2% month-on-month in September, marking the first monthly decrease since May 2023. The annual food inflation rate dropped to 4.5% from August’s 5.1%, representing the first slowdown in year-over-year food price growth since March. This moderation follows aggressive discounting campaigns by major supermarkets as they compete for increasingly budget-conscious consumers., as related article

“This represents a meaningful shift in the inflationary dynamic we’ve witnessed throughout most of 2025,” noted economic analyst Sarah Chen. “While still elevated, the direction of food prices suggests we may be past the peak of grocery inflation that has strained household budgets for over a year.”, according to technology trends

Policy Implications and Government Response

The inflation data arrives at a crucial moment for Chancellor Rachel Reeves, who faces mounting pressure to address cost-of-living concerns while maintaining fiscal discipline. With inflation remaining nearly double the Bank of England’s 2% target for twelve consecutive months, the steady reading provides some breathing room ahead of the November budget announcement.

Reeves has signaled her intention to introduce “a range of policies” in her November 26 budget specifically designed to “bear down on some of the costs that people face.” The latest inflation figures may influence the scope and timing of these measures, potentially allowing for more targeted interventions rather than broad-based stimulus., according to technology insights

Global Commodity Markets Show Volatility

While UK inflation shows signs of stabilization, global commodity markets experienced significant turbulence. Gold prices rose 0.5% to $4,145 per ounce this morning, recovering partially from Tuesday’s dramatic 5% decline—the metal’s largest single-day drop in five years. The precious metal had fallen as low as $4,003.39 during the selloff, which analysts attributed to the conclusion of the Diwali gold buying season and profit-taking after a parabolic rally.

Alex Hill, managing director at Electus Financial in Auckland, characterized the movement as a natural market correction: “What goes up has to go down. You’ve had a market that’s gone parabolically higher, at some points it’s going to get some relief.”

Industrial and Business Sector Implications

The inflation data carries particular significance for industrial and technology sectors, including the industrial PC market:

Supply chain stability: Moderating food inflation may indicate broader stabilization in logistics and transportation costs
Input cost pressures: The core inflation decline suggests potential relief for manufacturing component costs
Investment planning: More predictable inflation supports longer-term capital expenditure decisions in industrial automation
Consumer electronics impact: While not directly measured, food price trends often correlate with broader discretionary spending patterns

The persistence of above-target inflation continues to present challenges for business planning and investment, but the September stability—particularly in food categories—offers hope that the economy may be transitioning to a more manageable inflationary environment.

Looking Ahead: Monetary Policy Considerations

With the Bank of England’s Monetary Policy Committee facing the delicate balance between controlling inflation and supporting economic growth, the latest data provides crucial input for their upcoming decisions. The combination of steady headline inflation, declining core measures, and moderating food prices creates a complex picture that defies simple policy responses.

As businesses across the industrial and technology sectors monitor these developments, the focus remains on whether this represents a genuine inflection point or merely a temporary pause in the broader inflationary trend. The coming months will reveal whether the UK economy has truly turned a corner in its battle against persistent price pressures.

References & Further Reading

This article draws from multiple authoritative sources. For more information, please consult:

This article aggregates information from publicly available sources. All trademarks and copyrights belong to their respective owners.

Note: Featured image is for illustrative purposes only and does not represent any specific product, service, or entity mentioned in this article.

Only 40% of U.S. workers hold quality jobs as the Chamber of Commerce sues over proposed H-1B visa fee increases. Meanwhile, Chobani’s valuation hits $20 billion and Coca-Cola faces pressure over sugar sourcing amid broader economic shifts.

Labor Market Quality Concerns

According to reports, just 40% of U.S. workers hold what researchers define as “quality jobs,” roles meeting at least three of five criteria including financial well-being, workplace culture, and growth opportunities. The findings come as employee engagement reportedly sits near a 10-year low, with analysts suggesting broader sluggishness in the labor market despite employment numbers. This assessment of labor economics challenges conventional job market metrics that focus primarily on employment rates rather than job quality.