UK inflation rises to 3.5% as Middle East conflict drives fuel costs
Annual price growth exceeds forecasts in September, with diesel prices surging above £2 per litre.
At a glance
- UK inflation rose to 3.5% in September, exceeding economist forecasts of 3.4%
- Fuel price increases linked to Middle East conflict contributed to the rise
- Diesel prices climbed above £2 per litre
- Economists warn inflation could exceed 4% in the year ahead
UK inflation climbed to 3.5% in September, higher than the 3.4% forecast by economists, according to the Office for National Statistics. The increase from 3.1% in August was driven partly by a surge in fuel prices stemming from the Middle East conflict, which pushed diesel costs above £2 per litre.
The figures come a week before Chancellor John Healey is due to present his first budget. Economists have expressed concern that inflation could breach 4% in the coming year.
Why it matters
Inflation remains a key economic indicator affecting household finances and government policy. The figures influence decisions by the Bank of England on interest rates and shape the fiscal environment for the new chancellor's budget.
Original reporting
- The Guardian — BusinessUK inflation rises by more than expected to 3.5% as war drives up fuel prices
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.