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Letter from the Govenor to the Chancellor regarding CPI Inflation - September 2025
On 17 September 2025, the Office for National Statistics (ONS) published data showing that twelve-month inflation in the Consumer Prices Index (CPI) was 3.8% in August, unchanged from 3.8% in July. This letter sets out the outlook for inflation and the policy action the Monetary Policy Committee (MPC) is taking to return inflation to the 2% target, along with other considerations required by the MPC’s remit when inflation moves away from the 2% target by more than 1 percentage point. Why has inflation moved away from the 2% target? Consumer price inflation has fallen significantly over the past two and a half ... (full story)
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