UK inflation rises to 3.5 percent in September as petrol and diesel climb

Consumer prices in the UK rose 3.5 percent in the year to September, up from 3.1 percent in August, the Office for National Statistics reported on Wednesday. That is the highest annual rate since October 2025. Prices rose 0.4 percent during the month, against little change a year earlier.

Fuel was the largest single factor. The average price of petrol rose 8.2 pence a litre in September to 169.5 pence, the highest since August 2022. Diesel rose 10.7 pence to 192.5 pence, its highest since July 2022. Motor fuel prices were up 29.8 percent on the year, against 23.0 percent in August, and the transport division's annual rate climbed to 6.6 percent from 4.6 percent.

The rise was not confined to fuel. Core CPI, which excludes energy, food, alcohol and tobacco, rose to 2.8 percent from 2.6 percent. Goods inflation increased to 3.2 percent from 2.7 percent, and services inflation to 3.7 percent from 3.4 percent.

One category pulled the other way. Restaurants and hotels slowed to 3.8 percent from 4.1 percent, mostly because hotel prices rose less this September than last. CPIH, the statistics office's broader measure that includes owner occupiers' housing costs, rose to 3.6 percent from 3.3 percent.

The next release is due on November 18.