21 October 2026, 09:11 United Kingdom: Inflation Rate Hits 11-Month High.
The UK’s annual inflation rate rose to 3.5% in September 2026, its highest since October 2025, from 3.1% in August and above the expected 3.4%. Transport made the largest upward contribution, with inflation rising to 6.6% from 4.6%, driven mainly by motor fuels. Petrol prices rose 8.2 pence per litre month-on-month to 169.5 pence, the highest since August 2022, while diesel increased 10.7 pence to 192.5 pence, the highest since July 2022. Motor fuel inflation accelerated to 29.8% from 23.0%. Inflation also rose for housing and household services (5.3% vs 4.9%), communication (5.8% vs 5.3%) and recreation and culture (2.3% vs 1.6%). Food inflation was unchanged at 1.3%, while restaurants and hotels eased to 3.8% from 4.1%. Core CPI inflation increased to 2.8% from 2.6%, with goods inflation rising to 3.2% from 2.7% and services inflation to 3.7% from 3.4%. Monthly consumer prices rose 0.4%, compared with little change in September 2025. CPIH inflation rose to 3.6% from 3.3% during 2026.
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