UK inflation jumps to highest in nearly a year at 3.5%
TLT•UK annual consumer price inflation rose to 3.5% in September from 3.1% in August, above economists’ 3.4% forecast and the highest since October 2025. Services inflation increased to 3.7%, while core inflation rose to 2.8%.
1. Inflation accelerates
Annual consumer price inflation rose to 3.5% in September from 3.1% in August, the Office for National Statistics said. The increase, driven by higher petrol and diesel costs, exceeded the 3.4% median forecast in a Reuters poll and took inflation to its highest since October 2025.
2. Underlying pressures rise
Services inflation, which the Bank of England views as a guide to underlying price pressures, rose to 3.7% from 3.4%, above economists’ 3.6% forecast. Core inflation, excluding food, energy, alcohol and tobacco, increased to 2.8% from 2.6%, also above expectations. The data may intensify calls for household support in next week’s budget and add to the case for a Bank of England rate increase in November.
