Inflation comes in higher than expected - so what happens next?

Inflation in the UK rose to 3.5% in September, up from 3.1%, marking the third straight monthly increase and the highest annual rate since last October, according to the Office for National Statistics (ONS). Economists had forecast 3.4%, so the rise beat expectations. The ONS said higher fuel prices drove the increase, citing diesel reaching a record late in the month amid tighter global supplies linked to the Middle East conflict and the Russia-Ukraine war. Other upward pressures included airfares, and to a lesser extent computer games and live events, partially offset by slower hotel price growth. The article notes inflation may exceed 4% by year-end, influenced by a 4% energy price cap hike and possible fuel duty changes.