UK Inflation Hits 3.1%, Barratt Redrow Lowers Completions Guidance

UK inflation has accelerated to 3.1% in August, driven by higher fuel costs, according to the Office for National Statistics. This marks a 0.2 percentage point increase from July's 2.9% and matches market expectations. Core consumer price inflation, which excludes energy, food, alcohol, and tobacco, remained steady at 2.6%. The rise in headline inflation is largely due to higher transport costs, particularly motor fuels.

Barratt Redrow reported a 48% increase in annual pretax profit to £363.5 million for the 52 weeks ended June 28. However, the housebuilder lowered its financial 2027 completions guidance to between 17,500 and 17,900 homes from 17,700 to 18,200. This decision was made due to continued planning delays.

Babcock International said trading in the first five months of financial 2027 is in line with expectations, with good momentum and strong performances in its Nuclear and Aviation businesses amid robust demand across core defence markets. The company leaves its full-year outlook and medium-term guidance unchanged.