Inflation in the East Midlands remained steady at 3.8% in the 12 months to September 2025, according to the Office for National Statistics. The rate has now stayed unchanged for three consecutive months, remaining above the government’s 2% target and continuing to strain business costs across the region.
Data from the East Midlands Chamber’s Quarterly Economic Survey shows inflation and corporate taxation are the main concerns for regional businesses. Many firms have held back on investment, citing sluggish economic growth and uncertainty ahead of the Autumn Budget. National GDP increased by only 0.1% in August, signalling weak momentum across key sectors.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Stagnant inflation keeps the cost of doing business high and puts pressure on firms to consider price rises. The 3.8% level inflation has held at for three months in a row is still far too high and even if it hasn’t risen, it is far above the government’s 2% target. Business rates need reform, firms need to be given incentive to invest and there must be no tax increases applied to them. The Budget is a clear opportunity for the Chancellor to be fully supportive of business.”
With inflation stuck at nearly double the target rate, firms across the East Midlands are looking for a Budget that prioritises stability, productivity, and long-term investment confidence.
