UK inflation rose to 3.5% in the year to September, up from 3.1% in August, as motor fuel prices climbed. Petrol rose 8.2p per litre to an average of 169.5p and diesel rose 10.7p to 192.5p, the highest average prices since August 2022 for petrol and July 2022 for diesel, with annual motor fuel inflation at 29.8% versus 23% in August. Food prices fell 0.2% over the month, but annual food inflation stayed at 1.3%. The Bank of England held its rate at 3.75% in September, with three members favouring a rise to 4%, and its next decision is on 5 November. Moneyfacts data showed the average two-year fixed mortgage rate rising from 5.59% at the start of September to 5.93% at the start of October.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on ibtimes.co.uk ↗
Keywords
inflationUKfuel pricesinterest rates
Open a keyword to see other news on the same topic.
Related tickers and likely impact
GBP/USD
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 1.33800 |
| Change that session | +0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- UK inflation rise to highest in almost a year as Iran war drives fuel prices higher
UK consumer prices rose 3.5% in the year to September, up from 3.1% in August, the highest since October last year and above the 3.4% most economists expected. Motor fuel prices jumped 30% year on year, up from 23% in August, as the Iran war and bottlenecks in the Strait of Hormuz squeezed global oil and gas supplies. Economists expect the Bank of England to raise its main rate from 3.75% to 4% at its November 5 meeting. Treasury chief John Healey said next week's budget would aim to ease cost-of-living pressure on businesses and families.
- UK inflation jumps to highest rate in almost a year after fuel prices climb
UK CPI inflation rose to 3.5% in September from 3.1% in August, its highest level since 3.6% in October last year and above the 3.4% most economists had expected. Motor fuel prices were the main driver, soaring 30% year on year, with average petrol up 8.2p to 169.5p per litre, the highest in about four years, and diesel up 10.7p to 192.5p, its highest since July 2022. Fuel costs have climbed as the war with Iran squeezed global oil and gas supplies. Economists say a Bank of England interest rate hike at its November meeting is now 'firmly on the table,' while Chancellor John Healey pledged to do more on living costs in next week's Budget. CPIH rose to 3.6% and RPI to 3.9%.
- UK inflation jumps to 3.5% — cementing rate hike expectations
U.K. inflation rose to 3.5% in the 12 months to September, above the 3.4% forecast by economists polled by Reuters, and up from 3.1% in August and 2.9% in July. The reading is the highest annual rate in a year, driven mainly by motor fuel prices, which climbed 29.8% over the year and reached their highest level since August 2022, according to the Office for National Statistics. As a net energy importer, Britain is exposed to external energy shocks, such as the U.S.-Iran war and the struggle for oil to transit the Strait of Hormuz.
- Cost of living blow for united kingdom households as inflation soars again
UK inflation rose to 3.5% in September from 3.1% in August, according to the Office for National Statistics (ONS). This is the highest since the 3.6% recorded in October last year, and above the 3.4% most economists had expected. Transport costs were the biggest driver, as average petrol and diesel prices hit their highest in four years, with diesel at its most expensive since July 2022. Airfares, computer games and live events also pushed prices up, partly offset by slower growth in hotel prices. ONS chief economist Grant Fitzner said the cost of raw materials and factory-gate goods also kept rising.
- What factors helped lift inflation in September – and where did prices fall?
UK inflation rose to 3.5% in September from 3.1% in August, according to Office for National Statistics Consumer Prices Index data. Fuel was the biggest contributor: petrol prices rose 26.5% year on year (up from 20.2% in August), and diesel rose 35.8% (from 27.8%). The article links the acceleration in fuel price inflation to the ongoing Russia-Ukraine conflict and renewed Middle East hostilities, which have disrupted global oil supply. Air fares swung to a 3.9% annual rise from an 8.0% fall in August, and cinema, theatre and concert tickets rose 9.6%, while hotel price inflation eased to 1.2% from 2.7%.
- UK inflation accelerates to 3 . 5 % in September after fuel surge
UK CPI inflation rose to 3.5% in September from 3.1% in August, the highest since 3.6% in October last year and above the 3.4% most economists had expected. The ONS said transport, particularly motor fuels, was the biggest contributor, with average petrol and diesel prices at their highest in four years and diesel the most expensive since July 2022. Airfares, computer games and live events also pushed prices up, while hotel stays rose by less than a year earlier. Raw material and factory-gate prices kept climbing on higher crude oil and petrol costs, against a backdrop of the Middle East energy shock.
Related markets
Latest news
- 3 ETFs That Can Weather Stock Market Volatility
The article argues that for many investors, the best approach to a bear market is to buy low-cost index funds tracking the total U.S. stock market and hold through short-term declines. It highlights three ETFs, each with a 0.03% expense ratio: the Vanguard S&P 500 ETF (VOO), the Vanguard Morningstar Total Stock Market ETF (VTI) and the Schwab U.S. Broad Market ETF (SCHB). Since inception, VOO has averaged about 14.9% a year over 16 years, SCHB about 14.3% over nearly 17 years, and VTI about 9.4% over 25 years, including the 2008 financial crisis. Although these funds hold major tech stocks, they are more diversified than the tech-heavy Nasdaq-100, and in the 2022 bear market they performed much better than that index.
- A New Mexico Judge Ordered Meta to Pay $25 Billion For a Case. Its Stock is Still Climbing.
A New Mexico judge ordered Meta to pay $25 billion after a jury found the company misled consumers about the privacy of their data a decade ago. Judge Francis Mathew said Facebook's wrongdoing, which lasted for years, went to the heart of its core business practices. New Mexico Attorney General Raul Torrez said the ruling could be the largest verdict by a single state against the company. Meta shares still rose 1.77% to above $706.5 in the afternoon ET, and the company is likely to appeal. The case is tied to the Cambridge Analytica scandal, in which data from close to 90 million Facebook users was harvested without consent through a third-party app.
- Judge orders Meta to pay $25 billion to New Mexico for violations of state law
A Santa Fe district judge ordered Meta Platforms to pay New Mexico $25 billion after a jury found the company made false statements in violation of the state's Unfair Practices Act. The jury found 43.9 million violations, with 26 of 29 statements deemed false or deceptive, affecting nearly 1.4 million New Mexico Facebook users. Judge Francis Mathew wrote that Meta 'willfully and intentionally' misled the public, including through statements by CEO Mark Zuckerberg and former COO Sheryl Sandberg. Attorney General Raúl Torrez called it one of the largest financial penalties against a corporation in U.S. history. The case stems from a 2021 lawsuit over the Cambridge Analytica data scandal.
- SpaceX gives the AI trade a shot in the arm. What it means for our stocks
SpaceX shares rose about 7% after the company reported strong third-quarter results and a robust outlook through year-end and into 2027. The article argues that SpaceX's rocket, AI and connectivity business touches many layers of the AI supply chain, from power and semiconductors to data center infrastructure, models and applications. Musk said the main constraint on deploying AI compute is now power, cooling and infrastructure rather than chips, and SpaceX plans to bring 2.5 to 3 gigawatts of compute online by year-end and about 10 GW in 2027. Its agentic AI product Grok Bot previously had 800,000 paid weekly users, and the article points to GE Vernova and Eaton as possible beneficiaries of this demand.
- XRP Price Prediction: What Would It Actually Take for XRP to Hit $210?
The article questions a $210 XRP price target, noting XRP traded at $1.36 on October 21, 2026, with a market value of about $85.6 billion. Reaching $210 would require a market cap of about $13.26 trillion, roughly 7.9 times Bitcoin's $1.68 trillion and far above XRP's all-time high of $3.65 set on July 17, 2025. U.S. spot XRP ETFs have drawn about $1.8 billion in total net inflows, but recorded zero net inflows on October 19 and 20, and XRP has fallen 27.3% year to date despite Ripple announcements. The article concludes that reaching $210 soon is unlikely and that a more realistic path would first see XRP recover to $1.84, then $2.42, before testing its record high.
- Are Bonds Pricing In A Fed Policy Mistake?
Ten-year US Treasury yields surged to 5.33% after the October 14 CPI report, then fell to 5.03% a few days later despite hotter-than-expected inflation data. Mohamed El-Erian cited two AI-related reasons: a flight to quality out of tech stocks under pressure (the SOX index fell almost 20%), and slower AI spending that could weaken growth and inflation. The author adds short covering, as asset managers added more than 100,000 contracts to short 10-year Treasury futures, and a strong $39 billion 10-year auction at 5.300% that drew more demand than expected. The article argues the bond market may be pricing in the risk that the Federal Reserve is being pushed into a policy mistake.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.