On a monthly basis, CPI rose by 0.3% in August 2025, the same rate as in August 2024.

Meanwhile, CPIH grew by 0.3% in August 2025, compared with a 0.4% increase in August 2024.

According to the ONS, air fares made the largest downward contribution to the monthly change in both CPIH and CPI annual rates, while restaurants, hotels and motor fuels made large upward contributions.

Daniel Austin, CEO and co-founder of ASK Partners, said: “Today’s unchanged UK inflation rate points to a bumpy and uncertain road ahead.

“Policymakers are caught between volatile global conditions, exacerbated by ongoing uncertainty, and shifting domestic policy.

•   B&C Awards 2025: The Video
•   'Frustrating' 3.8% inflation rise leaves property market in 'wait-and-see situation'
•   3.6% inflation uptick provides 'no respite' despite hopes for future base rate cuts

“Markets still expect another rate cut before year-end, but with the Autumn Budget looming, the MPC is likely to hold fire until there’s clarity on the Chancellor’s fiscal plans. A premature move would be a leap of faith.

“For homeowners and buyers, the hope of lower borrowing costs lingers, yet persistently elevated fixed mortgage rates mean relief is not imminent.

“With inflation unlikely to return to the 2% target this year, mortgage pressures look set to persist.

“Resilient sectors such as co-living, build-to-rent and storage continue to attract capital thanks to tight supply and strong demand, but a stable downward inflation trend is critical to unlocking broader activity.”

Ben Thompson, deputy CEO at Mortgage Advice Bureau, added: “While inflation holding means we're still some way from the 2% target, it suggests that the bumpy ride may be levelling out.

“It’s widely believed that we’re nearing the peak, and this result supports the idea that a gradual decline is on the horizon.”