Ahead of the report, here’s a snapshot of how the UK’s current economic indicators.
Inflation
The latest Consumer Price Index (CPI) inflation rate for the 12 months to August was 3.8%, unchanged from the previous month.
The figure represents the highest rate in 18 months, and it’s only predicted to increase.
Food price inflation climbed for a fifth consecutive month, up from 4.9% in July to 5.1% in August. It comes amid warnings from supermarkets that further tax raids expected in the Chancellor’s November Budget will push this figure up further.
The Bank of England forecasts UK inflation to reach 4% in September.
Interest rates
The Bank of England held the Base Rate at 4% in September, as Governor Andrew Bailey warned, « we’re not out of the woods yet » with rising inflation.
The Bank reviews the Base Rate, which influences mortgages, loans, and savings rates, to help temper inflation. It typically raises or holds the interest rate when inflation is high to curb spending and slow price increases, and lowers it when inflation drops. The current inflation rate is nearly double the Bank’s target, which is 2%.
GDP
Gross domestic product (GDP) estimates are the main measure of UK economic growth based on the value of goods and services produced during a given period.
The latest report indicated that the UK economy experienced no growth in July, with monthly GDP remaining unchanged.
GDP growth slowed to 0.2% in July from 0.3% in June.
Employment
The UK unemployment rate for people aged 16 and over was estimated at 4.7% from May to July 2025. This is up from the latest quarter and above estimates from a year ago.
Estimates for payrolled employees in the UK fell by 142,000 between July 2024 and July 2025, and by 6,000 between June 2025 and July 2025.
