UK Inflation Climbs to 3.5% in September as Fuel Prices Rise

UK annual inflation rose to 3.5% in September, its highest rate since October 2025, as faster fuel price increases put fresh focus on the Bank of England’s Nov. 5 interest rate decision.

The consumer price index had risen 3.1% from a year earlier in August. The September reading was released Oct. 21 at 2 a.m. ET (06:00 UTC).

Motor fuel prices increased 29.8% from a year earlier, compared with a 23.0% annual increase in August. Transport was the largest contributor to September’s increase in the annual inflation rate. Price changes at restaurants and hotels partly offset that increase.

Core inflation also accelerated, reaching 2.8% in September after a 2.6% reading in August. The core measure excludes energy, food, alcohol and tobacco.

The Bank of England held its benchmark interest rate at 3.75% in September. Six policymakers voted to keep the rate unchanged, while three voted to raise it. “The risks to the inflation outlook are tilted to the upside,” its Monetary Policy Committee said at that meeting.

The bank’s next rate decision is scheduled for Nov. 5.