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flag UK inflation rose to 3.8% in September 2025, driven by soaring food prices and business costs, exceeding the Bank of England’s target.

flag UK inflation hit 3.8% in September 2025, the highest since early 2024 and well above the Bank of England’s 2% target, driven by a 5.1% rise in food prices. flag Rising business costs, including higher National Insurance and packaging taxes, added over £7 billion in expenses for retailers. flag Supermarkets and business leaders are urging the government to exempt large shops from a proposed business rates surtax, warning it could worsen inflation and hurt growth. flag Inflation now exceeds the EU average and is the highest among G7 nations, according to OECD forecasts. flag Analysts link the trend to fiscal decisions from the 2024 Budget and caution against further tax hikes, urging targeted reforms to reduce business costs and support consumers ahead of the November Budget and holiday spending.

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