UK inflation rises by more than expected to 3.5% as war drives up fuel prices
Motor fuel prices surged 30% and pushed inflation above the Bank of England’s 2% target, strengthening expectations of a November rate hike.
- 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.
140 Articles
140 Articles
Inflation in the United Kingdom rose to its highest level in almost a year, while the war with Iran continues to push fuel prices, official figures showed Wednesday, which strengthens expectations that the Bank of England will raise interest rates next month.
Why the UK is struggling to electrify the nation
As Jackdaw puts the focus on energy prices, the latest figures show that UK inflation has risen to 3.5 per cent in September - its highest rate in almost a year, as surging petrol and diesel costs pushed up the cost of living.
Daily Record
KTBSUK inflation rises to highest in almost a year as Iran war drives fuel prices higher
Inflation in the U.K. has risen to its highest rate in almost a year as the Iran war continues to drive up fuel prices. Official figures show consumer prices rose by 3.5% in the year to September, up from 3.1%…
The figure exceeds by a tenth the consensus of analysts consulted by Bloomberg, and marks a net increase from the August data (3.1% year-on-year). The September figure complicates the task of the British Labour government, which wants to fight against the shortage of life and which in one week must present its draft budget for 2027.
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