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UK inflation rises by more than expected to 3.5% as war drives up fuel prices
Motor fuel and household energy costs pushed inflation to a one-year high, above economists’ 3.4% forecast, the Office for National Statistics said.
- The Consumer Prices Index rose to 3.5% in September from 3.1%, according to the Office for National Statistics, marking the highest annual inflation rate in 12 months.
- Conflicts in the Middle East and Europe squeezed global oil supplies, driving petrol and diesel prices sharply higher, with average diesel surpassing £2 a litre this month, according to RAC figures.
- Rob Wood and Elliott Jordan-Doak, UK economists for Pantheon, attributed the surge to higher motor fuel costs, while the end of a temporary summer VAT cut also contributed to rising prices.
- The price acceleration ahead of John Healey's first Budget cemented expectations for a Monetary Policy Committee interest rate hike, reversing the Bank of England's prior easing cycle.
- September's reading continues an upward inflation trend in Britain, following earlier prints of 2.9% and 3.1%, as energy shocks have driven overall price pressures throughout the summer.
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The surge in fuel prices, due to the crisis in the Middle East and problems in oil transport through the Strait of Hormuz, is intensifying pressures on the British economy.
·Marousi, Greece
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UK Inflation Jumps to 11-Month High as BOE Considers a Hike
UK inflation jumped to an 11-month high after a surge in petrol and diesel costs, a surprisingly large increase that leaves the Bank of England on track for its first interest-rate hike in over three years.
·New York, United States
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Total News Sources31
Leaning Left3Leaning Right6Center8Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 18%
C 47%
R 35%
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