Inflation sticks at 3.8% as food prices rise for fifth month

The rate of inflation may be unchanged at 3.8% helped by a drop in airfares, but the cost of food rose for the fifth month in a row and tax hikes for business have fed through to prices

The August inflation figure remained unchanged from the previous month, saved by the transport sector where prices were down. But food prices continued their inexorable rise, basically heading upwards every month since April. The monthly 0.4% food inflation figure blamed on rising employment costs, and poor harvests caused by inclement weather. This is reflected in the highest rises for vegetables, cheese and fish.

The 12-month inflation rate for food and non-alcoholic beverages was 5.1% in August 2025, up from 4.9% in July. 

Another sector experiencing high inflation with price increases over the summer was hospitality with prices rising significantly at bars, restaurants and hotels.

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