UK inflation held at 3.8% in September for a third month, while the core Consumer Price Index (CPI) edged down to 3.5%, and markets quickly priced softer interest-rate risks as gilt yields slipped to fresh 2025 lows.
With the Autumn Budget set for 26 November, Chancellor Rachel Reeves faces competing demands: hold the line on borrowing or loosen the purse strings in a weak growth, high-debt environment.
