UK inflation rises to 3.5% as fuel prices surge

UK annual inflation rose to 3.5% in September from 3.1% in August, driven by higher petrol and diesel prices, according to official data.

• The Office for National Statistics reported annual inflation reached 3.5% in the year to September, up from 3.1% in August.
• Petrol prices averaged 169.5p per litre in September, the highest since August 2022, up 8.2p from August.
• Diesel prices rose to a record high above £2 per litre this month, with motor fuel prices up 29.8% in the period.
• The ONS said the government borrowed £25bn in September, £1.8bn more than the same month a year earlier.
• The inflation data strengthened expectations that the Bank of England will raise interest rates at its November meeting.
• The Bank of England projected inflation to exceed 4% in early 2027, raising concerns about a return of the cost-of-living crisis.
• The ONS said debt interest payments reached £10.9bn in September, the highest September figure on record.
• Total government debt surpassed £3tn for the first time, although it fell slightly to 94% of GDP as a share.
• The ONS attributed £4bn of the borrowing increase to rising energy costs from the Iran war affecting inflation-linked bonds.
• The debt equates to more than £100,000 per household, the Office for National Statistics said.
• Shadow Treasury Minister Andrew Griffith said Labour have lost control of the economy and called for urgent measures to tackle the deficit.
• The figures trigger welfare uprating and a 3.9% State Pension rise ahead of Chancellor Rachel Reeves' first Budget next week.