UK inflation โ€“ live: New rate to be announced today as Budget looms



Peak inflation means ‘damage already done’ for some families

Tamsin Powell, consumer finance expert at Creditspring, said it might prove a positive for the mid-term – but still a tough situation to deal with in the here and now.

โ€œIf the Institute for Fiscal Studiesโ€™ forecast proves correct and inflation peaks in September, it will offer some hope that price rises may finally begin to ease. But for many UK households the damage has already been done. Living costs remain high, and families are still feeling the squeeze from months of rising prices across transport, food, and other essentials,โ€ she said.

โ€œFor many families, even small increases in prices can deepen financial strain. Wages are still struggling to keep up with the cost of living, and without a savings buffer, a single bill or unexpected cost can cause real stress.

โ€œAs we move into winter, rising energy costs and Christmas spending will only add to the pressure. Many households will now be focusing on cutting back and reprioritising essentials, with day-to-day spending decisions becoming more about necessity than choice. Financial resilience is being tested, and small changes – like planning ahead, managing budgets closely, and seeking out support early – will be key to getting through the coming months.โ€

Karl Matchett22 October 2025 06:20

Inflation expected to rise after borrowing rises again

The first half of the year has seen the government borrow close to ยฃ100bn – and with interest rates still high it means Rachel Reeves has a lot of money to raise in the Budget next month.

Budget, debt, interest rates, inflation…itโ€™s all linked and today we get another piece of the puzzle.

Inflation rising means itโ€™s more likely interest rates stay higher, as the Bank of England looks to contain it.

However, higher rates also means higher borrowing costs, meaning more taxes or spending cuts are needed to plug the gaps in public finances.

Thatโ€™s why Reeves wants productivity and growth up, so Treasury income also increases, and borrowing therefore can be lower. Well, part of the many reasons anyway.

Karl Matchett22 October 2025 06:10

Inflation news live

Good morning all. The latest UK inflation figures are set to be released at 7am – weโ€™re expecting another nudge higher to around the 4 per cent level.

Thatโ€™s predicted to be a short-term peak, but another reminder of the cost pressures families and businesses alike are facing.

Karl Matchett22 October 2025 05:58

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