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UK inflation hits 3.5% as fuel prices surge before Budget
UK inflation rose to 3.5% in the year to September from 3.1%, the ONS said, as fuel prices surged before the Budget.
Key points
- UK inflation accelerated to 3.5% in the year to September from 3.1%, the ONS said.
- The rise came as fuel prices surged ahead of the Budget.
- Canada's annual inflation rate rose to 3.1 per cent in September, Statistics Canada said.
Why it matters. Faster UK inflation ahead of the Budget may shape expectations for interest rates, while Canada's pickup could complicate the Bank of Canada's rate decision later this month.
UK inflation accelerated to 3.5% in the year to September, up from 3.1%, according to the Office for National Statistics. The rise comes as fuel prices surged ahead of the Budget. Separately, Statistics Canada said Canada's annual inflation rate rose to 3.1 per cent in September, which some economists said leaves the Bank of Canada in a difficult position ahead of its rate announcement later this month.
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UK inflation hits 3.5% as fuel prices surge before Budget
The UK inflation rate rose to 3.5% in the year to September, up from 3.1% in August, the Office for National Statistics reported on Tuesday. Soaring fuel prices were the primary driver, pushing the rate further above the Bank of England's 2% target. The figure came in slightly higher than economists had forecast and represents the third successive monthly increase. The data lands just days before the government's Budget announcement, intensifying pressure on policymakers to address cost-of-living concerns.