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Inflation holds firm at 3.8% - your business

ended 17. September 2025

The Consumer Prices Index (CPI) rose by 3.8% in the 12 months to August 2025, unchanged from July, according to official data published this morning. On a monthly basis, CPI rose by 0.3% in August 2025, the same rate as in August 2024. Air fares made the largest downward contribution to the monthly change in both CPIH and CPI annual rates; restaurants and hotels, and motor fuels made large, partially offsetting, upward contributions. 

  • Has consistently higher inflation started to impact your business or charity? For example, demand may be weaker or the cost of materials may have risen?
  • How confident are you feeling as a business or charity right now - and specifically ahead of the Budget?
  • What are your thoughts on the Government's management of the economy, specifically its fiscal policies?

Any other thoughts, send them across ASAP as this story is BREAKING.

4 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
Rising prices and pay pressures are squeezing business margins from all directions. While 3.8% inflation may sound modest compared with last year’s peaks, the compounding effect continues to bite. As a business, we see costs rising across the board — from office supplies to IT equipment — at the same time as staff understandably expect higher pay. The bigger concern is that UK plc risks longer-term problems if businesses are forced to cut back investment as a result.
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Eamonn Prendergast
Chartered Financial Adviser at Palantir Financial Planning Ltd
Consistently high inflation is draining household budgets and that always feeds through to small businesses and charities. Families who feel cash-strapped spend less and donate less, while costs for energy, catering and supplies creep up, a double squeeze. Confidence is fragile ahead of the Budget, with speculation on pensions and business rates only fuelling uncertainty. What’s needed is stability and clarity, not reactive policy. The Government must get ahead of the rumours and set out a long-term plan for growth. Without it, inflation stays sticky, demand stays weak, and confidence fades
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Editor
Tony Redondo
Founder at Cosmos Currency Exchange
At 3.8% inflation remains nearly double the BoE’s 2% target. Businesses remain under several pressures. With core inflation rising by an annual 3.6% in August, underlying price pressures remain elevated. With ever-rising input costs for materials, energy, and wages, many businesses struggle with whether to pass costs to customers or absorb them, aware that consumer spending patterns will shift as household budgets tighten. Whilst inflation persists above target, interest rates will remain elevated. Business confidence will continue to flounder, especially with the 26 November budget highly likely to raise the tax burden yet again. This government’s economic management is simply abysmal. Illiterate.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Building materials have risen 18% year on year, skilled trades are demanding 15% wage increases, and every service contract renewal comes with double digit hikes. A bathroom renovation that cost £8,000 last year now quotes at £10,500, while basic maintenance like boiler repairs has jumped 25%. Insurance premiums have exploded, with my commercial policies up 40% despite no claims. These are not temporary blips. They represent permanent cost base increases that tenants cannot absorb and buyers will not accept.

Business confidence is non existent ahead of the Budget. Every conversation with fellow developers centers on what punitive measures Rachel Reeves will unveil next. Will it be capital gains tax hikes, further restrictions on mortgage interest relief, or some new wealth tax targeting property assets? The uncertainty is paralyzing investment decisions and forcing everyone into defensive positions.