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Martin Sartorius, Principal Economist, CBI responds to inflation data for August 2025

“Inflation remained elevated in August, consistent with the Bank of England’s projections. Higher food and energy prices, alongside the passthrough from increased labour costs, are expected to keep price growth firm in the near term.

“The Monetary Policy Committee looks set to keep interest rates unchanged tomorrow and, going forward, the MPC faces a delicate balance between signs of a cooling labour market and the risk of price pressures remaining stubbornly high. Its rate decision in November will likely hinge on whether future data give the MPC confidence that a further cut will not contribute to inflation staying elevated for longer."

Inflation and price indices