UK inflation rises to 3.5% in September, above forecasts

Briefing by News4U · First published 2026-10-21 10:35:26 UTC

UK inflation climbed to 3.5% in September, driven by higher fuel prices linked to the Middle East conflict, ahead of next week’s Budget.

The Office for National Statistics reported that UK annual inflation rose from 3.1% in August to 3.5% in September, exceeding the 3.4% consensus forecast. The increase was mainly due to higher petrol and diesel prices, with diesel exceeding £2 a litre. [1] [2] [3] [4] [5]

The data, released one week before Chancellor John Healey’s first Budget, also showed government borrowing exceeded forecasts and public debt surpassed £3 trillion. Economists expect the Bank of England to raise interest rates at its November meeting. [2] [3] [5]

Sources

1. UK inflation rose more than expected to 3.5% in September

   Financial Times · 2026-10-21 06:01:16 UTC · Summary only

2. UK inflation rises by more than expected to 3.5% as war drives up fuel prices

   The Guardian Business · 2026-10-21 06:02:04 UTC · Full text

3. UK inflation and borrowing climb before Healey's budget

   RTÉ Business · 2026-10-21 06:35:48 UTC · Full text

4. UK September inflation fuels expectations of imminent BoE rate rise

   Financial Times · 2026-10-21 07:03:47 UTC · Summary only

5. Rising inflation fuels rate-hike fears in UK

   RTHK Finance · 2026-10-21 09:17:46 UTC · Excerpt

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