There's nothing to say about the inflation data out this morning from the ONS, about which they said:
- The Consumer Prices Index (CPI) rose by 3.8% in the 12 months to September 2025, unchanged from August.
- On a monthly basis, CPI was unchanged in September 2025, as in September 2024.
- Transport made the largest upward contribution to the monthly change in CPI annual rates; recreation and culture, and food and non-alcoholic beverages made the largest offsetting downward contributions.
- Core CPI (CPI excluding energy, food, alcohol and tobacco) rose by 3.5% in the 12 months to September 2025, down from 3.6% in the 12 months to August; the CPI goods annual rate rose slightly from 2.8% to 2.9%, while the CPI services annual rate was unchanged in September, at 4.7%.
Inflation has plateaued. It might fall in the next few months.
And given wage and benefit rises are broadly matching inflation right now, there is no cause to panic about what is happening.
The only real question is: given that this is not an issue, why is the economy being punished for the sake of an arbitrary 2% inflation target that was set for reasons no one now understands?
A video is coming out on that tomorrow, unless plans change in the meantime.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
There are links to this blog's glossary in the above post that explain technical terms used in it. Follow them for more explanations.
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Buy me a coffee!
Two percent = moot percent.
Agreed.
Might an answer to the question about the economy being punished for the sake of an arbitrary 2% inflation target include any of the following?
1) The illeducated emotional appeal of definite numbers
2) The wish of a power elite to depress the regular citizenry into subsevience
3) A “punished” economy largely affects the not wealthy and benefis rentiers, great and small
4) Our governments have a big problem in admitting that they have made mistakes
5) A lack of a really analytical and reasonably objective main stream media, not least the B.B.C.
6) The delusive appeal of a fixed data figure when the context is better served by data of a flexible range type, usually connected to a set of affecting factors
Yes
Inflation at 3.5% food 3.8% and. People moaning about pensioners being better off by 0.5 and 0.2% better off next April!