UK Inflation Accelerates to 3.5% in September as Fuel Costs Rise

The Office for National Statistics reported on October 21, 2026 that annual UK consumer inflation increased to 3.5% in September from 3.1% in August. Prices rose 0.4% monthly, with motor fuels the largest contributor to the acceleration.

Interest rates remain in focus

ING’s James Smith, writing on October 21, expects rate rises in November and February while seeing limited evidence of widespread second-round energy effects. These are research forecasts, not Bank of England decisions.

Investors will watch inflation and wages. Data surprises could affect sterling and gilts. Follow our UK economic coverage.

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