Britain’s annual inflation rate rose more sharply than expected in September, reaching 3.5 per cent as surging fuel prices pushed up the cost of living, official figures showed on Wednesday. The Consumer Prices Index climbed from 3.1 per cent in August, according to the Office for National Statistics (ONS).
The September figure was the highest in almost a year and exceeded economists’ consensus forecast of 3.4 per cent. It comes just a week before the Labour government is due to present its annual budget, which is expected to focus on mounting pressure on households.news.
The ONS said transport costs, particularly motor fuels, made the largest contribution to the increase. Petrol and diesel prices soared amid the US-Iran war, which has strained global energy markets and driven up crude oil prices.finance.
At British petrol stations, the average price of petrol rose by 8.2 pence a litre between August and September, reaching 169.5 pence. Diesel increased by 10.7 pence to 192.5 pence a litre, its highest level since July 2022, shortly after Russia launched its full-scale invasion of Ukraine.
Overall, motor fuel prices rose by nearly 30 per cent in the year to September, up from a 23 per cent annual increase in August. The ONS said the rise reflected higher crude oil and petrol costs, which also pushed up the price of raw materials and goods leaving British factories.independent.
Grant Fitzner, the ONS’s chief economist, said inflation had climbed notably to its highest annual rate in almost a year. He added that increased fuel prices remained the main driver, with diesel costs reaching their highest level since July 2022.
The unexpected rise will intensify scrutiny of the government’s economic strategy ahead of the Budget. With fuel, transport and household costs still rising, ministers face growing pressure to offer relief to families and businesses struggling with the continued squeeze on living standards.
