Surging fuel prices push UK inflation rate to 3.5% ahead of Budget
Rate of inflation rises from 3.1% in September as conflicts squeeze global oil supplies and push up debt interest costs.
Quick Look
- UK inflation accelerated to 3.5% in September from 3.1%, driven by sharp increases in petrol and diesel prices due to global conflicts.
- Meanwhile, government borrowing reached £25bn, driven up by higher debt interest costs.
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Why It Matters
The Office for National Statistics reported inflation figures ahead of the government budget.
The pace of UK price rises accelerated ahead of John Healey's first Budget, pushed up by sharp increases in petrol and diesel prices.
The rate of inflation rose to 3.5% from 3.1% in the year to September, according to the Office for National Statistics (ONS).
The cost of filling up a vehicle has soared in recent months as conflicts in the Middle East and Europe continued to squeeze global oil supplies.
Petrol prices in September were the highest since August 2022, the ONS said, while diesel also rocketed.
The average price of petrol rose by 8.2p per litre to 169.5p per litre between August and September, while diesel rose to 192.5p per litre.
Motor fuel prices overall rose by 29.8% in the period covered by the figures.
The figures came as the ONS said the government borrowed £25bn in September, £1.8bn higher than a year earlier, as higher inflation helped to push up debt interest costs.
Open Questions
- What measures will John Healey announce in the upcoming Budget?
