21/10/2026
UK inflation rose to 3.5% in September, up from 3.1% in August, according to the latest Consumer Prices Index figures from the Office for National Statistics.
Transport costs, particularly petrol and diesel, made the largest upward contribution to the increase in the annual inflation rate.
Rising prices put pressure on household budgets and reduce the purchasing power of money. Inflation can also influence borrowing costs, savings rates and investment markets.
The latest figure remains above the Bank of England’s 2% target. Inflation is one of several factors the Bank considers when setting interest rates, alongside wages, employment and economic growth.
The announcement does not automatically mean a change in Bank Rate or mortgage rates, but it remains an important part of the wider economic picture.
[Source | Office for National Statistics | 21 October 2026]