CPI inflation remains at 3.8%

CPI inflation remains at 3.8%

22 Oct 2025

Simeon Willis, Chief Investment Officer, XPS Group, commented: "Prices were steady over September this year and as a result the inflation rate for the 12 months has remained stable at 3.8%. This contrasts with the marked fall in 10-year inflation expectations so far over October.

The 12-month inflation print remaining flat on last month is a good sign that near-term inflation may be on the turn. Longer-term expectations, which are driven by gilt supply and demand from long-term investors, indicate that long-term inflation protection appears to be falling out of favour - another good sign.

Defined benefit pension scheme funding will generally have been positively impacted by the recent fall in inflation expectations."