October 21, 2026
The inflation rate in the United Kingdom rose during the month of September to its highest level in 11 months, driven by a noticeable jump in fuel and energy prices, which reinforces expectations that the Bank of England is close to implementing its first interest rate hike in more than three years.
Data issued by the British National Statistics Office showed that the consumer price index rose by 3.5% on an annual basis in September, compared to 3.1% in August, exceeding analysts’ expectations of 3.4%.
The office explained that gasoline and diesel costs represented the main driver of the acceleration in inflation, especially after diesel prices reached record levels in late September, coinciding with crude oil exceeding the $100 per barrel barrier.
In the same context, service sector inflation – which is considered a key indicator for measuring local price pressures – rose to 3.7%, while producer data confirmed the continued transmission of inflationary pressures and their penetration through the various stages of production.
