— Stability Brings Cautious Optimism for Industry
The UK’s annual inflation rate held firm at 3.8% in September, according to the latest data from the Office for National Statistics (ONS) — marking the third consecutive month of stability and defying expectations of a rise to 4%.
For businesses across the engineering and manufacturing sectors, this steadying trend offers a degree of reassurance following two years of cost volatility. Notably, food prices fell by 0.2% from August, bringing annual food inflation down to 4.5% from 5.1%, driven largely by increased supermarket discounting. This represents the first monthly decline since May 2023 and the first easing in annual food inflation since March.
Core inflation, which excludes the more volatile food and energy prices, also dipped slightly — from 3.6% to 3.5%.
While inflation remains almost double the Bank of England’s 2% target, the recent consistency suggests price pressures are beginning to level off. For UK manufacturers and engineering employers, this could indicate a more predictable operating environment heading into 2026 — potentially supporting more stable investment and hiring conditions.
