UK inflation rises to 3.5% in September, highest since October 2025, as petrol and diesel prices climb
Consumer prices in the United Kingdom rose 3.5% in the year to September, up from 3.1% in August, with motor fuels the largest upward contribution, the Office for National Statistics said.
The UK Consumer Prices Index rose 3.5% in the 12 months to September 2026, up from 3.1% in August, the Office for National Statistics (ONS) said on Wednesday 21 October. It is the highest annual rate since October 2025, according to the ONS. Sharecast reported that forecasts had been for 3.4%.
On a monthly basis, prices rose 0.4% in September. Core CPI, which excludes energy, food, alcohol and tobacco, rose 2.8% in the year, up from 2.6% in August. The CPIH measure, which includes owner occupiers’ housing costs, rose 3.6%.
The ONS said transport, particularly motor fuels, made the largest upward contribution. The average price of petrol rose 8.2 pence a litre during September to 169.5 pence, the highest since August 2022, and diesel rose 10.7 pence to 192.5 pence, the highest since July 2022. Motor fuel prices were 29.8% higher than a year earlier. Restaurants and hotels made the largest offsetting downward contribution.
Services inflation rose to 3.7% from 3.4%, and goods inflation rose to 3.2% from 2.7%, the highest since September 2023.
Martin Sartorius, lead economist at the Confederation of British Industry, said the rise means “a rate hike will remain firmly on the table” at the Bank of England’s next Monetary Policy Committee meeting, according to Sharecast. The next CPI release is due on 18 November.
See also: UK unemployment falls to 4.7% and Bank of England’s Bailey on second-round effects.
Sources
- Consumer price inflation, UK: September 2026 · Office for National Statistics
- London close: FTSE gains as inflation data cements rate hike expectations · Sharecast
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