Business
Food price rises slow as UK inflation remains at 3.8%
Charlotte EdwardsBusiness reporter, BBC News
Getty ImagesFood and drinks prices in the UK are increasing at their slowest rate in more than a year, while overall inflation remains unchanged for the third month in a row.
Month-on-month, the cost of food and non-alcoholic drinks actually edged down slightly in September – the first fall since May 2024. The ONS said his was likely to have been driven by increased sales and discounting by retailers.
The UK inflation rate for all items remained stable at a lower-than-expected 3.8% in the year to September, official figures show.
Chancellor Rachel Reeves said she was “not satisfied with the numbers” on inflation, while shadow chancellor Mel Stride said it was “pushing up the cost of living”.
Elaine Doran/BBCThe inflation rate for food and non-alcoholic drinks was down to 4.5% for the year to September from 5.1% in the year to August.
This means the price shoppers pay for groceries and non-alcoholic drinks is still going up, just more slowly than before.
But between August and September this year, the cost of food and non-alcoholic drinks overall actually fell by 0.2% – the first fall for 16 months.
The drop was driven by slightly cheaper vegetables, milk, cheese and eggs, bread and cereals, fish, mineral waters, soft drinks and juices.
However, the cost of specific items such as red meat and chocolate continued to rise.
Kayleigh Brannan, a mother to baby Hadley, told the BBC she had noticed the price of meat rising in particular, and that now Hadley has started eating solid foods, she expected her expenses would be going up.
“It’s not too bad at the moment but you can see the prices going up,” she said.
She added: “The maternity pay is not enough. You’ve still got the same bills, you’ve still got to pay the mortgage… obviously you have more pressure then.”
Britain’s inflation rate was also 3.8% in July and August, according to the ONS, which is still much higher than the Bank of England’s 2% target.
However, the central bank’s economists had forecast inflation to rise to 4% in September.
ONS chief economist Grant Fitzner said: “The largest upward drivers came from petrol prices and airfares, where the fall in prices eased in comparison to last year.”
He added: “These were offset by lower prices for a range of recreational and cultural purchases including live events.”
Mr Fitzner told BBC Radio 4’s Today programme that food prices were still “running quite high at 4.5%” but added “the fact that we have seen that steady increase dip a little is encouraging.”
“It is just one month’s numbers so we will have to see what transpires in future months – but nonetheless a small glimmer of hope there,” he said.
Paul Dales, chief UK economist for Capital Economics, said while food price inflation could rise further, “this will probably be the peak in inflation”.
James Walton, chief economist at the Institute of Grocery Distribution said the declining rate of food and drink inflation “aligns with our predictions that food inflation will start to moderate, and we may have seen the peak.”
“Whilst this is good news, prices for shoppers are still going up year on year, just more slowly,” he said.
Mr Walton noted that items such as red meat, coffee and chocolate are still seeing strong price increases and linked this to issues with production, such as bad weather.
Danni Hewson, AJ Bell head of financial analysis, said: “Staples like vegetables, milk, cheese and bread were all pared back a touch, though such tiny movements won’t make a huge difference to the overall bill when people reach supermarket tills.”
Dr Kris Hamer, director of insight at the British Retail Consortium, said the figures were “unlikely to raise consumer spirits as the cost of a weekly grocery shop was still “significantly higher than last year”.
“Nonetheless, consumers will have been happy to see the price of key staples such as rice, bread and cereal fall on the month,” he said.
The chancellor said she was “not satisfied with these numbers.”
“For too long, our economy has felt stuck, with people feeling like they are putting in more and getting less out,” Reeves said.
She added that she was determined to ensure the government supports people “struggling with higher bills and the cost of living challenges, deliver economic growth and build an economy that works for, and rewards, working people.”
In a post on X, the shadow chancellor said that inflation running at nearly double the Bank of England’s target was “pushing up the cost of living and punishing those Labour promised to protect”.
Stride claimed national insurance increases, government borrowing and not having “the backbone to reduce spending” were all contributing to inflation.
The overall inflation figure for September matters more than most other months.
That’s because the government usually uses this as the benchmark for the benefits uprating in April.
It means millions of people depending on benefits are likely to see a 3.8% increase in their payments next year.
The state pension will rise by more, because the annual increase for that is determined by the so-called triple lock.
This guarantees that the state pension goes up each year in line with either inflation, wage increases or 2.5% – whichever is the highest. September’s inflation figure of 3.8% is below average earnings for the relevant period (4.8%) which means the rise in wages will decide the state pension increase.
The inflation figures for the past three months were the joint-highest recorded since January 2024, when the rate was 4%, according to the ONS.
Inflation in the UK remains well below the 11.1% figure reached in October 2022, which was the highest rate for 40 years.
The National Hockey League said Wednesday it’s reached a multi-year licensing agreement with prediction markets Kalshi and Polymarket. More sports leagues may be coming soon.
Tarek Mansour, Kalsh’si co-founder and CEO, told CNBC’s “Squawk Box” the deal marked a “seminal moment” for prediction markets and the company.
“A league like the NHL partnering with us is a strong sign that prediction markets are here to stay,” Mansour said.
As part of the NHL deal, Kalshi and Polymarket will gain access to the league’s proprietary data and rights to use NHL marks and logos. In return, Mansour said, the hockey league will get a suite of customer protections. The NHL said both companies will receive brand exposure during broadcasts.
Mansour said the NHL deal could be replicated across other leagues: “Be on the lookout for more announcements soon,” he told CNBC.
Representatives for the NBA and NFL did not immediately respond to requests for comment. MLB declined to comment.
In August, the NFL expressed its concern about prediction markets, which allow customers to trade on the outcomes of events across entertainment and culture like election results or the length of the ongoing government shutdown.
Kalshi and other event trading platforms are regulated by the Commodity Futures Trading Commission. Yet many states, regulators and tribes are pushing back on prediction markets, arguing they amount to unregulated gambling. Multiple state and federal lawsuits are in progress over the alleged risks.
The American Gaming Association said in a statement Wednesday that the NHL deal “sends a troubling message.”
“The platforms in question fail to comply with essential standards,” the AGA said. “Worse, they are currently offering sports wagers in all 50 states to anyone 18 years of age—some of which have not authorized any form of legal sports betting and those that have largely define 21 as the prevailing legal age for wagering.”
Keith Wachtel, president of NHL Business, told CNBC he feels comfortable with Kalshi and Polymarket from a regulatory and integrity standpoint, noting that sportsbooks like FanDuel and DraftKings have also struck partnerships with prediction platforms.
He said the league’s interest in prediction markets lies in the opportunity to reach new fans.
“What’s great about prediction markets is it goes beyond sport,” he said. “It gives opportunity to watch a different audience grow significantly.”
Mansour said criticism of the market is par for the course for a disruptor and that he feels confident in Kalshi’s regulatory setup. He said Kalshi has spent years working with the federal government to create a regulated prediction markets.
“When we think about the announcement today, the NHL deal is really about that. It’s essentially a validation of the fact that we have established the right set of customer protection and the right set of market integrity measures to protect our markets, but also the game,” he said.
Mary Barra speaks onstage during WSJ’s Future of Everything 2025 at The Glasshouse on May 28, 2025 in New York City.
Dia Dipasupil | Getty Images
NEW YORK — General Motors is targeting a suite of new software initiatives for its vehicles over the next three years, including an in-vehicle artificial intelligence assistant from Google and a driver-assistance system that can largely control the vehicle without human interaction or monitoring.
GM said the conversational Google Gemini AI will begin launching in its vehicles next year, followed by the new driver-assistance system, which will allow drivers to be hands-free and take their eyes off the road under certain circumstances, in 2028.
GM CEO Mary Barra and other executives made the announcements Wednesday as part of a “GM Forward” software event that also showcased other initiatives designed to “transform the car from a mode of transportation into an intelligent assistant,” the automaker said.
The company also announced that it is working on a new centralized computing platform, which is planned to roll out starting with the Escalade IQ in 2028; increased use of collaborative robots, also known as cobots, that can work alongside humans; and expanding availability of products from its GM Energy business.
GM displays its plans for a new centralized computing platform during the automaker’s “GM Forward” event on Oct. 22, 2025, in New York City.
Michael Wayland | CNBC
“Today we’ll share our vision for our vehicles, our industry and how we’re driving the future of transportation forward,” Barra said to kick off the event in lower Manhattan.
‘New era of mobility’
GM said the announcements are meant to usher in a “new era of mobility” for the company, which has struggled to achieve such initiatives in the past. Its previous efforts at moving forward include announcing plans in 2021 to double revenue by 2030, led by many now-defunct growth businesses, as well as growing annual software and services revenue to between $20 billion and $25 billion.
In recent years, it also killed an “Ultra Cruise” system meant to be able to drive in 95% of circumstances that was initially due to come out in 2023 and folded its Cruise robotaxi business.
GM executives on Wednesday declined to discuss revenue potential of the new announcements. CFO Paul Jacobson has previously walked back the doubling revenue goal, but has noted the company’s growing revenue, up 9.1% last year to $187.44 billion.
GM graphic of the automaker’s upcoming centralized computing design that’s set to debut in the Cadillac Escalade IQ in 2028.
GM
GM President Mark Reuss on Wednesday said the company’s revenue plans are “pretty much on track … maybe a year or two different” as it plans to continue to grow revenue, especially with the technologies announced Wednesday. He also said these initiatives are “very different” than prior announcements, as they’re tangible products that are entering the market shortly.
As of the third quarter of this year, GM recognized $2 billion from software services. That’s up from 2021, when the plans were announced and it took the full year to hit that mark. It also cited $5 billion in deferred revenue, up 90% from a year earlier, to end the third quarter.
The event comes a day after GM reported standout third-quarter earnings and upped its guidance, pushing the stock to have its second-best day on record since the automaker’s 2009 emergence from bankruptcy.
GM stock on Wednesday was trading relatively flat.
AI
GM said the artificial intelligence system from Google, which its infotainment system is developed on, will make “it possible to talk to your car as naturally as you would to a fellow passenger.”
“Our vision is to create a car that knows you, that looks out for you, and just meets your needs, even before you say,” Sterling Anderson, GM chief product officer, said during the event.
Anderson called the centralized computing a “foundational piece” of the company’s plans in increasing the capabilities of its vehicles.
GM Chief Product Officer Sterling Anderson during the automaker’s “GM Forward” event on Oct. 22, 2025 in New York City.
Michael Wayland / CNBC
The Detroit automaker said it expects to update select vehicles from the 2016 model year to all new models in the U.S. beginning next year with the AI tech.
GM also said it plans to develop its own “AI, custom-built” technology in the years to come but did not provide an exact time frame.
“In the future, we will introduce our own AI fine-tuned to your vehicle,” said David Richardson, a former Apple executive who is now GM vice president of software and services engineering. “Think of this as an assistant. It’s going to anticipate your needs, offer timely help and make every journey more personable and more enjoyable.”
Hands-free, ‘eyes-off’
GM said it plans for its upgraded advanced driver-assistance system, also known as ADAS, to feature hands-free, “eyes-off” driving technology, beginning on the Cadillac Escalade IQ EV, which currently starts around $127,500, in 2028.
The automaker then expects to expand the availability of the tech to other models, company executives said.
“Autonomy will make our roads safer. They’ll give customers back their most valuable asset: time. It’ll be a cornerstone of GM product portfolio going forward,” Anderson said.
Cadillac Escalade IQ with lidar
GM
The vehicle will use lidar, or light detection and ranging, systems that allow it to better detect or “see” its surroundings. Tesla CEO Elon Musk has notably been a critic of the technology, and his company’s vehicles rely on camera-based systems and computer vision.
“Just be clear, we’re developing a self driving product,” Anderson, a former Tesla executive, told CNBC. “It’s an eyes-off, self-driving system. As it relates to use of lidar in it, your product will be better with multiple modes of sensing, period. Full stop.”
Anderson, calling it an “ocean that’s too big to boil,” said the system is expected to evolve incrementally to its full potential.
GM declined to say whether the new technology will be called “Super Cruise,” which is its current system that allows drivers to be hands-free on 600,000 miles of pre-mapped roads in North America.
The current Super Cruise system monitors a driver’s attentiveness through the use of sensors and eye-detection cameras.
GM was the first automaker to offer such a hands-free system in 2016, but it was slow to roll out the technology until recent years.
Barra said the rollout of the new system will be significantly faster than the company’s initial expansion of Super Cruise.
GM Energy
Starting in 2026, GM said it will make its “Energy Home System” — which includes bidirectional electric vehicle charging and a stationary home battery — available via leasing, compared with outright purchasing the equipment.
The leasing will begin with GM all-electric vehicles owners and later roll out to other homeowners interested in backup power and solar integration, the company said.
GM Energy launched in 2022 as one of the automaker’s growth initiatives involving EVs. It was started to rival Tesla‘s home energy systems and provide battery packs, EV chargers and software to help customers optimize charging and ride out electric grid disruptions.
GM has not disclosed the size or revenue of its GM Energy business other than a blog by Wade Sheffer, vice president of GM Energy, that said momentum for its services are growing.
“It’s really incredible to see all the great things that are right on the horizon, and I know we will deliver for our customers, and that’s what matters most,” Barra said. “This moment builds on our history and sets the course.”
The FTSE 100 forged ahead on Wednesday, with housebuilders in demand, as weaker-than-expected inflation figures boosted hopes for an interest rate cut before the end of the year.
The FTSE 100 index closed up 88.01 points, 0.9%, at 9,515.00.
The FTSE 250 ended 321.49 points higher, 1.5%, at 22,229.79 and the AIM All-Share advanced 2.17 points, 0.3%, at 768.03.
Consumer prices rose 3.8% year-on-year, unchanged from August and below the FXStreet-cited consensus of a 4.0% increase, according to figures from the Office for National Statistics.
Core inflation, which strips out energy, food, alcohol, and tobacco, eased to 3.5% from 3.6%.
Both readings were below Bank of England forecasts for 4.0% and 3.8%.
In addition, closely watched services inflation held steady at 4.7%, defying forecasts for a rise to 4.8%, and below the Bank’s 5.0% projection.
Kathleen Brooks, at XTB, noted rate cut bets ramped up post the inflation report bolstering the chances of an early Christmas present from the UK’s central bank.
She said there are now 17 basis points (bps) of cuts priced in for December, compared to 10 bps of cuts expected on Tuesday.
“Better UK inflation news brings a December rate cut back into play,” said James Smith, developed markets economist at ING.
While Barclays said a quarter point rate cut could come as soon as November.
“The flow of data since the September (Bank of England) meeting has been soft on the labour market, soft on activity and now soft on inflation – a compelling trinity,” the bank noted.
While Goldman Sachs said the data “increase the risks that the next (Bank of England) cut comes earlier than our February baseline.”
In response, sterling fell while bond yields fell. The yield on the UK 10-year gilt traded below 4.40% in Wednesday, after topping 4.80% a month ago.
The pound was quoted lower at 1.3366 US dollars at the time of the London equity market close on Wednesday, compared to 1.3390 dollars on Tuesday.
The euro stood at 1.1610 dollars, down slightly compared to 1.1612 dollars. Against the yen, the dollar was trading at 151.78 yen, a touch higher compared to 151.74 yen.
On the FTSE 100, rate sensitive housebuilders were buoyant, with Persimmon up 6.3%, Barratt Redrow up 5.1% and Berkeley Group up 3.8%.
On the FTSE 250, builders merchant Travis Perkins surged 6.9% and building materials firm Marshalls climbed 5.9% on hopes that rate cuts will accelerate growth in the housing market.
Banks were also in favour after well received third quarter results from lender Barclays.
The London-based bank surprised the City by bringing forward a £500 million share buyback and also raised guidance.
This came despite increasing its provision for car finance and taking a £110 million hit from the collapse of subprime lender, Tricolor.
Barclays Group finance director Anna Cross said, excluding the motor finance provision, the operational performance of the business has continued to strengthen with signs of momentum visible across the business.
She also said there are “no signs of consumer distress” in the UK ahead of November’s budget, with arrears low and stable, demand robust, and customers managing spend carefully.
Barclays rose 4.9%, while NatWest, which reports third quarter results on Friday, climbed 1.6%, and Lloyds Banking Group, which reports on Wednesday, advanced 1.0%.
The mood was less bright in Europe. The CAC 40 in Paris ended 0.6% lower, while DAX 40 in Frankfurt closed 0.7% lower.
Stocks in New York were lower at the time of the London close. The Dow Jones Industrial Average was down 0.3%, the S&P 500 was 0.6% lower, while the Nasdaq Composite declined 1.1%.
Netflix stumbled 10% after reporting weaker-than-expected earnings after Tuesday’s US market close.
The streaming service took a 619 million US dollars (£463 million) charge related to an ongoing dispute with Brazilian tax authorities.
The yield on the US 10-year Treasury was quoted at 3.96%, unchanged from Tuesday. The yield on the US 30-year Treasury stood at 4.55%, widened from 4.54% on Tuesday.
Elsewhere, British Airways owner IAG rose 2.2%, benefiting from an upgrade by Goldman Sachs to “buy” from “neutral”.
On the FTSE 250, ITV plunged 8.1% after Liberty Global sold £135 million worth of ITV shares in a placing to institutional investors, cutting its stake in the broadcaster to 5% from 10%.
The telecommunications company, based in Denver, Colorado, first took a stake in London-based television broadcaster ITV in 2014 from satellite subscription service provider Sky for £481 million and nearly doubled it the following year – to 9.9% from 6.4%.
Also on the FTSE 250, Softcat climbed 4.6% after posting double-digit annual growth in both profit and revenue.
The IT infrastructure provider reported a 12% rise in pre-tax profit to £178.2 million on revenue up 52% to £1.46 billion, driven by an “exceptionally strong” second half and large project wins.
Gold continued to track lower after its record-breaking run. The metal traded at 4,028.64 dollars an ounce on Wednesday, down from 4,131.30 dollars on Tuesday.
Joshua Mahony at Rostro said gold traders are desperately trying to gauge whether Tuesday’s historic collapse was indicative of a new period of weakness or simply a case of “blowing off steam” after a dramatic surge into record highs.
He said: “Ongoing themes around geopolitics, trade tensions, debt, dollar strength and haven demand means that there is always likely to be a concoction of factors for traders to consider.
“However, with the Trump-Putin meeting called off, and scepticism over the likeliness of a wide-reaching US and China trade agreement, there will likely be calls for gold to regain its upward momentum soon enough.”
Brent oil traded at 62.61 dollars a barrel, up from 61.26 dollars late on Tuesday.
The biggest risers on the FTSE 100 were: Persimmon, up 74p at 1,253p; Howden Joinery, up 51p at 863.5p; Barratt Redrow, up 19.5p at 405.9p; Barclays, up 17.75p at 382p; and Entain, up 37.8p at 824p.
The biggest fallers on the FTSE 100 were: Rolls Royce, down 32p at 1,102.5p; Fresnillo, down 34p at 2,080p; Polar Capital Technology Trust, down 7p at 433p; Melrose, down 8.8p at 625.2p; and Glencore, down 4.2p at 340.2p.
Thursday’s global economic diary has retail sales figures in Canada and a eurozone consumer confidence report.
Thursday’s UK corporate calendar has third quarter results from lender Lloyds Banking Group; exchange operator and data provider London Stock Exchange; pest control firm Rentokil; consumer goods company Unilever; and miner Antofagasta.
Contributed by Alliance News
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