UK CPI inflation hits 3.5% in September as fuel prices surge

The Office for National Statistics said September CPI climbed to 3.5%, up from 3.1% in August, with transport fuel costs as the main driver.

By Felo News Desk · Published Wed, 21 Oct 2026 08:04:12 GMT

The Office for National Statistics reported that the United Kingdom's Consumer Prices Index (CPI) rose to 3.5% in September, the highest rate in almost a year.

What happened

September CPI increased from 3.1% in August to 3.5%, surpassing the 3.4% forecast of most economists. The rise marks the highest CPI level since the 3.6% recorded in October 2025. Transport‑related costs, especially motor fuels, were the biggest contributors. Average petrol price reached 169.5p per litre, an eight‑pence rise from August and the highest level in about four years. Diesel rose to 192.5p per litre, the highest since July 2022, and briefly topped 200p per litre at the start of the month, according to RAC data.

What the reports add

Standard.co.uk noted that motor fuels surged 30% year‑on‑year to September, up from a 23% rise in August. The outlet also linked the fuel price spike to the Iran war, which it said has squeezed global oil and gas supplies. The Independent echoed the ONS figures and quoted ONS chief economist Grant Fitzner, who highlighted fuel, airfares, computer games and live events as upward pressures, while hotel stays showed a modest price increase.

What was said

Grant Fitzner, ONS chief economist, told Standard.co.uk, “Inflation climbed notably in September to its highest annual rate in almost a year. Increased fuel prices were again the main driver, with the cost of diesel the highest since July 2022.” Chancellor John Healey responded to the data, saying the price rises stem from “global conflict” and that his team is monitoring the situation, as reported by Standard.co.uk.

How it came about

The latest CPI figures follow a series of economic pressures highlighted in recent Felo News coverage. On 21 September, Felo reported that the UK’s budget headroom had shrunk to about £12 bn, partly due to higher borrowing costs linked to the Iran war and weaker growth (uk-budget-headroom). Earlier, on 18 October, Felo noted a surge in profit warnings from UK‑listed firms, with many citing rising costs and geopolitical uncertainty (uk-profit-warnings-budget). These developments provide context for the September inflation spike, especially the transport‑fuel component driven by global supply constraints.

Key facts

UK CPI inflation rose to 3.5% in September 2026 (standard.co.uk)
September CPI was up from 3.1% in August (standard.co.uk)
Average petrol price reached 169.5p per litre, the highest in four years (standard.co.uk)
Diesel price hit 192.5p per litre, the highest since July 2022 (standard.co.uk)
Motor fuels rose 30% year‑on‑year to September (standard.co.uk)
ONS chief economist Grant Fitzner said fuel prices were the main driver (independent.co.uk)