The UK inflation determine was 3.8% for the 12 months to August 2025, unchanged from July, based on the newest figures from the Office for National Statistics (ONS).
Market watchers had been anticipating a rise for August which might possible be repeated in September hitting a peak of 4%.
Commenting on the newest 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 broadly anticipating inflation to rise, immediately’s figures shall be seen as a shocking but optimistic growth.
“While it’s unlikely the Bank of England will reply instantly and cut charges tomorrow, regular progress in the direction of the goal of 2% inflation might create the area 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 assume I’d be planning a rate slicing get together for tomorrow. But what it might imply is much better odds for a change in November which had just lately appeared off the playing cards.
He added that regardless of the financial system flatlining in July, inflation was nonetheless proving notably cussed, together with fairly fierce headwinds attributable to each world and home pressures.
“Nonetheless, we’ve got seen a superb 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 going through, 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 information was unlikely to push any important shift in market charges that would have an effect on mortgage debtors.“It received’t transfer the dial on what we will count on from tomorrow’s base rate determination, the place a maintain shall be odds-on favorite.”
He added that mortgage debtors might nicely be steeling themselves for an additional serving to of cautious tone and the message that base rate is not going to fall till a sustainable path for inflation appeared clear.
“It’s anticipated that inflation might nudge greater earlier than it eases, so debtors should await indicators of enchancment earlier than they will hope for an additional curiosity rate cut.”
ASK chief government and co-founder Daniel Austin stated unchanged UK inflation nonetheless pointed to a bumpy and unsure street forward.
“Policymakers are caught between unstable world situations, 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 consumers, the hope of decrease borrowing prices lingers, but persistently elevated fastened mortgage charges imply reduction is just not imminent. With inflation unlikely to return to the two% goal this yr, mortgage pressures look set to persist.”
