UK inflation rises to 3.5 percent in September

UK consumer price inflation rose to 3.5 percent in the year to September 2026, up from 3.1 percent in August and the highest rate since October 2025, slightly above the 3.4 percent consensus forecast, the Office for National Statistics said on Wednesday.

Why it matters: The rise was driven by motor fuels rather than services alone, and producer prices accelerated at the same time, which keeps pressure on the Bank of England ahead of its November meeting without changing the expected path on its own.

Data as of Office for National Statistics consumer price and producer price bulletins for September 2026, released Wednesday, October 21, 2026 and read in full; the 3.4 percent consensus forecast is the Pantheon Macroeconomics consensus reported ahead of the release. Developing item.

UK consumer prices rose 3.5 percent in the year to September 2026, up from 3.1 percent in August, with prices up 0.4 percent on the month against little change a year earlier, and core inflation rose to 2.8 percent from 2.6 percent, the Office for National Statistics said. Transport made the largest upward contribution, as motor fuel prices rose 29.8 percent over the year, petrol averaged 169.5 pence a litre, its highest since August 2022, and diesel averaged 192.5 pence, its highest since July 2022, while restaurants and hotels partly offset the rise. The pipeline pointed the same way, with producer input prices up 8.3 percent over the year and factory gate prices up 4.6 percent, the largest rise since April 2023, both driven mainly by oil related products.

UK inflation rises to 3.5 percent in September

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