UK inflation rose to 3.5% in September from 3.1% in August, its highest in almost a year, driven mainly by petrol and diesel prices, with motor fuel up almost 30% year on year while food inflation held at 1.3%. Average petrol reached 169.5p per litre and diesel 192.5p, their highest in more than four years. Ofgem's energy price cap rose 4% in October, and economists warn inflation could exceed 4% this winter. Many expect the Bank of England to lift its 3.75% base rate to 4% next month, which could raise costs for tracker and variable-rate mortgage borrowers. Moneyfacts found 1,683 savings accounts currently pay rates above the 3.5% inflation figure, offering savers a chance to protect their spending power.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: New warning for household bills , mortgages and savings as inflation hits 3 . 5 %
Read the original on dailyrecord.co.uk ↗
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GBP/USD
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 1.33800 |
| Change that session | +0.57% |
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