UK Inflation Rises to 3.5% Amid Higher Fuel Prices.

Annual inflation in the United Kingdom rose to 3.5% in September, reaching its highest level since October 2025. The increase exceeded economists’ expectations.

According to Reuters, data released by the Office for National Statistics (ONS) on October 21 showed that annual consumer price inflation increased to 3.5% in September, up from 3.1% in August. A Reuters poll of economists had forecast a rate of 3.4%.

The ONS attributed the rise in inflation mainly to higher petrol and diesel prices. Price growth in the services sector also accelerated, rising to 3.7% in September from 3.4% in August. Core inflation, which excludes food, energy, alcohol and tobacco prices, increased from 2.6% to 2.8%.

The rise in inflation could also affect expectations regarding the Bank of England’s interest rate policy. The figures were released ahead of the budget to be presented by Finance Minister John Healey. The government is expected to introduce additional support measures for households affected by rising energy prices.

The United Kingdom’s heavy reliance on imported natural gas is also increasing the impact of tensions in energy markets on the country’s economy.