Inflation jumps to highest rate in almost a year after fuel prices climb

Inflation in the UK jumped to 3.5% in September, the highest Consumer Prices Index (CPI) rate in almost a year, up from 3.1% in August, according to the Office for National Statistics. Economists had expected 3.4%. The rise takes inflation further away from the Bank of England’s 2% target. Transport costs were the biggest driver, particularly motor fuels: petrol surged 30% year-on-year to September, up from 23% in August. Average petrol rose 8.2p between August and September to 169.5p per litre, the highest in about four years, while diesel climbed 10.7p to 192.5p, its highest since July 2022, with RAC data showing it topped 200p at the start of October. ONS linked the fuel spike to squeezed global supplies amid the Iran war, alongside other pressures like airfare.