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UK inflation hits 3.5% in September, highest in a year
UK inflation hit 3.5% in September, the highest in a year, driven by fuel prices, the ONS says.
Key points
- UK inflation was 3.5% in the year to September, up from 3.1% in August, the ONS said.
- ONS chief economist Grant Fitzner said fuel prices were the main driver of the rise.
- The government borrowed more than anticipated, ONS data shows, as Chancellor John Healey prepares his Budget.
Why it matters. Higher-than-expected inflation and borrowing could constrain Chancellor John Healey's Budget, which he says will give families and businesses breathing space.
UK inflation rose to 3.5% in the year to September, up from 3.1% in August, according to the Office for National Statistics. ONS chief economist Grant Fitzner said fuel prices were the main driver, with diesel at its highest price since July 2022, while airfares, computer games and live events also contributed. The figure was slightly higher than economists expected and marks the third successive increase. The government also borrowed more than anticipated, the ONS data shows.
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UK inflation hits 3.5% in September, highest in a year
The Office for National Statistics reported that UK consumer price inflation reached 3.5% in the year to September, the highest rate in nearly a year and above the Bank of England's 2% target. The increase was driven primarily by higher petrol and diesel prices, with the figure slightly exceeding economist expectations. This marks the third successive monthly rise in the inflation rate. The data comes as the government prepares to deliver its Budget next week, with the September figure typically used to determine benefit uprating levels. Economists widely expect inflation to rise further in the coming months.