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UK Consumer Price Index inflation rises to 3.5 per cent in September
UK Consumer Price Index inflation rose to 3.5 per cent in September
Key points
- UK CPI inflation increased to 3.5% in September from 3.1% in August.
- Motor fuels rose by 30% in the year to September, with petrol reaching 169.5p per litre.
- The September inflation rate is typically used to determine the level at which many benefits will increase.
Why it matters. The rise in inflation, driven by energy and fuel costs, may impact the cost of living and determine the level of benefit increases.
The Office for National Statistics reported that UK Consumer Price Index inflation rose to 3.5% in September, up from 3.1% in August. Economists believe the acceleration was driven by higher fuel and energy costs. This figure is the highest since October last year and exceeded the 3.4% expectation of most economists.
Latest updates
UK Consumer Price Index inflation rises to 3.5 per cent in September
The Consumer Prices Index (CPI) inflation rate increased to 3.5% in September, up from 3.1% in the previous period. This spike occurs as Andy Burnham prepares for the first Budget of his tenure. Economists monitor the September rate closely as it typically determines the level of increases for various government benefits.
UK inflation rises to 3.5% in September ahead of first Budget
The UK's Consumer Prices Index inflation rate rose to 3.5% in the 12 months to September 2026, up from 3.1% in August, marking the highest level this year. The September inflation figure is closely watched by economists as it is typically used to decide the level at which many benefits will increase. The rise comes just days before Chancellor John Healey's first Budget, adding pressure on the government led by Andy Burnham. Higher inflation could force the government to increase benefit payments while also facing higher borrowing costs. The timing is particularly challenging as the government prepares to present its fiscal plans. Economists will be watching whether the inflation spike is temporary or signals a broader price pressure trend.
UK inflation rises to 3.5% in year to September
The Office for National Statistics reported that the UK inflation rate reached 3.5% in the year to September. This increase was primarily driven by soaring petrol and diesel prices. The figure marks the third successive increase and exceeds the Bank of England's 2% target. The data comes just ahead of the government Budget scheduled for publication at 10:31 BST next week.