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Economic Buzz: UK inflation rises by 3.8%, services inflation elevated at 5%
20-Aug-2025 11:45
According to the Office for National Statistics, UK's consumer price inflation as shown by the Consumer Prices Index (CPI) rose by 3.8% in the 12 months to July 2025, up from 3.6% in the 12 months to June.

On a monthly basis, CPI rose by 0.1% in July 2025, compared with a fall of 0.2% in July 2024.

Core CPI rose by 3.8% in the 12 months to July 2025, up slightly from 3.7% in the 12 months to June; the CPI goods annual rate rose from 2.4% to 2.7%, while the CPI services annual rate rose from 4.7% to 5.0%.

The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 4.2% in the 12 months to July 2025, up from 4.1% in the 12 months to June. On a monthly basis, CPIH was little changed in July 2025, the same as in July 2024.

Core CPIH rose by 4.2% in the 12 months to July 2025, down slightly from 4.3% in the 12 months to June; the CPIH goods annual rate rose from 2.4% to 2.7%, while the CPIH services annual rate was unchanged at 5.2%.

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