The UK inflation determine was 3.8% for the 12 months to August 2025, unchanged from July, in keeping with the most recent figures from the Office for National Statistics (ONS).
Market watchers had been anticipating a rise for August which might doubtless be repeated in September hitting a peak of 4%.
Commenting on the most recent figures and what this would possibly imply for householders and debtors Livemore managing director of capital markets and finance Simon Webb, stated: “With the market extensively anticipating inflation to rise, in the present day’s figures will likely be seen as a shocking but optimistic improvement.
“While it’s unlikely the Bank of England will reply instantly and cut charges tomorrow, regular progress in the direction of the goal of two% inflation might create the house for rate cuts later within the yr.
Just Mortgages and Spicerhaart chief government John Phillips commented that whereas an unchanged inflation rate was optimistic information: “I nonetheless don’t suppose I’d be planning a rate slicing occasion for tomorrow. But what it might imply is much better odds for a change in November which had not too long ago appeared off the playing cards.
He added that regardless of the economic system flatlining in July, inflation was nonetheless proving significantly cussed, together with fairly fierce headwinds attributable to each world and home pressures.
“Nonetheless, now we have seen an excellent begin to September with optimistic exercise throughout all areas of our enterprise – whether or not that’s purchaser registrations, valuation requests or mortgage appointments. It reveals that regardless of the pressures households are dealing with, there may be nonetheless urge for food to push on with plans to purchase or promote.”
L&C Mortgages affiliate director David Hollingworth stated the brand new inflation knowledge was unlikely to push any vital shift in market charges that would have an effect on mortgage debtors.“It gained’t transfer the dial on what we are able to count on from tomorrow’s base rate determination, the place a maintain will likely be odds-on favorite.”
He added that mortgage debtors might nicely be steeling themselves for one other serving to of cautious tone and the message that base rate won’t fall till a sustainable path for inflation appeared clear.
“It’s anticipated that inflation might nudge increased earlier than it eases, so debtors should wait for indicators of enchancment earlier than they will hope for one other curiosity rate cut.”
ASK chief government and co-founder Daniel Austin stated unchanged UK inflation nonetheless pointed to a bumpy and unsure highway forward.
“Policymakers are caught between unstable world circumstances, exacerbated by ongoing uncertainty, and shifting home coverage. Markets nonetheless count on one other rate cut earlier than year-end, but with the Autumn Budget looming, the MPC is more likely to maintain hearth till there’s readability on the Chancellor’s fiscal plans. A untimely transfer can be a leap of religion.”
“For householders and patrons, the hope of decrease borrowing prices lingers, but persistently elevated fastened mortgage charges imply reduction just isn’t imminent. With inflation unlikely to return to the two% goal this yr, mortgage pressures look set to persist.”
