Business · Economy · 50 mins ago
UK inflation rises to 3.5% as fuel prices surge
UK inflation rose to 3.5% in the year to September, up from 3.1% in the year to August.
The increase came as petrol and diesel prices surged, with petrol reaching its highest price since August 2022.
Conflicts in the Middle East and Europe have squeezed global oil supplies, contributing to higher fuel costs.
Petrol rose by 8.2p per litre to 169.5p, while diesel reached 192.5p per litre.
The government borrowed £25bn in September, £1.8bn more than a year earlier, and higher inflation added to its debt interest costs.
The figures came ahead of John Healey's first Budget, though no Budget measures are stated.
UK inflation rose to 3.5% in the year to September, up from 3.1% in August, the Office for National Statistics said.
Higher petrol and diesel prices were the biggest factor pushing inflation up.
The rise was above economists’ 3.4% forecast and marked the highest rate in almost a year.
Average petrol prices rose by 8.2p per litre to 169.5p between August and September, while diesel reached 192.5p per litre.
Chancellor John Healey blamed price rises on conflicts affecting global energy supplies and said he would address growth and household pressures in next week’s Budget.
- Who
- UK consumers and the government, with inflation figures reported by the Office for National Statistics.
- What
- Annual inflation rose to 3.5% in September, driven mainly by higher petrol and diesel prices.
- When
- September 2026; the figures were published on 21 October 2026.
- Where
- The United Kingdom.
- Why
- Fuel costs rose amid conflicts in the Middle East and Europe that squeezed global oil supplies.
This story does not have two clearly opposing sides.
UK inflation was 3.1% and average petrol prices were lower than in September.
Annual inflation rose to 3.5%, with higher petrol and diesel costs the largest upward pressure.
The Office for National Statistics published the inflation figures.
Martin Beck said a Bank of England interest-rate increase at its meeting was increasingly likely.
- Annual inflation
- 3.5% in September, up from 3.1% in August
- Economists’ forecast
- 3.4%
- Average petrol price
- 169.5p per litre in September, up 8.2p
- Average diesel price
- 192.5p per litre in September, up 10.7p
- Motor fuel inflation
- 30% in the year to September, according to the Evening Standard
- Government borrowing
- £25bn in September, £1.8bn higher than a year earlier, according to the BBC
7 sources
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What people are saying
Inflation climbed notably in September to its highest annual rate in almost a year.
We know that price rises from conflicts in the Middle East and Europe are hitting Britain and countries worldwide.
Raising interest rates cannot produce more oil or gas, and further tightening risks weakening an already fragile economy.
Higher fuel and transport costs will likely push up food prices, and January’s large price cap increase will land as household energy demand peaks.