Phoebus comment on September CPI figures

22 October 2025

Phoebus Software’s chief sales and marketing officer, Richard Pike, says:

“While it’s positive to see that inflation hasn’t risen as much as the markets were expecting, it remains stubbornly high, with the 12-month CPI expected to be 3.8% by the end of 2025, well above the Bank of England’s target of 2%. With the Bank taking a ‘gradual and careful’ approach to easing monetary policy, it’s likely to be next year now before we see a cut in the base rate. We’ve seen mortgage rates ticking up in recent weeks but the good news for homebuyers is that they remain substantially lower than a year ago.

“However, with growth and productivity weak, and UK businesses and households highly cautious, Rachel Reeves needs to pull a rabbit out of the hat in the upcoming budget to balance the books without fuelling further inflationary pressures with potential tax rises.”