UK inflation jumps to highest in nearly a year at 3.5%
EWU•UK annual consumer price inflation rose to 3.5% in September from 3.1% in August, above economists’ 3.4% forecast and its highest level since October 2025.
1. Inflation accelerates
September’s inflation rise was driven by higher petrol and diesel costs, the Office for National Statistics said. The Bank of England had forecast inflation of 3.0%.
2. Underlying pressures rise
Services inflation increased to 3.7% from 3.4%, above the 3.6% forecast. Core inflation rose to 2.8% from 2.6%, also exceeding expectations.
3. Budget and rates in focus
The data could intensify calls for household support in next week’s budget and add to the case for a Bank of England interest-rate increase in November. Britain’s reliance on imported natural gas has left it more affected than most Western countries by the war in the Gulf.
