Just Mortgages comments on CPI inflation figures

22 October 2025

John Phillips, CEO of Just Mortgages and Spicerhaart, said:

“Once again inflation has defied expectations, with CPI holding steady at 3.8% for a third consecutive month. The consensus was that we would likely reach double the Bank of England’s target. This is absolutely welcome news and poses two real questions – have we reached the peak of inflation and what does this mean for the interest rate decision next month? Will this give the central bank some confidence to deliver a much-needed cut?

“The elephant in the room remains the upcoming Autumn Budget with further tax changes likely to feature in the Chancellor’s plans. We saw the inflationary impact of last year’s Budget as employers and businesses passed on the cost of higher taxation to consumers. A similar impact could amplify cost pressures and keep inflation elevated for longer.

“The main focus for much of the market right now will be breaking out of this holding pattern created by a very late Budget. However the Budget falls, getting it out of the way will definitely be helpful in creating more activity. Despite an uncertain outlook, there are plenty of positives to take in the current climate with movement on rates from different lenders, plenty of money in the market and broad product and criteria options available. These are the key messages brokers need to be sharing with clients as they rely on us to help navigate the market.”