The 12 month rate of CPI inflation jumped to 3.5% in September from 3.1% in August, mainly due to higher fuel costs, ONS reported today.
ONS said that on a monthly basis, CPI rose by 0.4% in September 2026, compared with little change in September 2025.
The bump up in inflation was down to rising transport costs, mainly motor fuels which provided the biggest upward contribution to the monthly change in both CPIH and CPI annual rates.
Conflict in the Middle East has seen fuel costs rise rapidly over the past few months.
In contrast, restaurants and hotels made the largest downward contribution, partially offsetting the rise.
The sister Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.6% in the 12 months to September 2026, up from 3.3% the previous month. On a monthly basis, CPIH rose by 0.4% in September 2026, compared with a rise of 0.1% in September 2025.
The rises in inflation are well above the Bank of England’s target of 2% and may encourage the Bank of England’s Monetary Policy Committee to increase interest rates faster than planned, some experts said.
Core CPIH (CPIH excluding energy, food, alcohol, and tobacco) rose by 3.1% in the 12 months to September 2026, up from 2.9% in August. The CPIH goods annual rate rose from 2.7% to 3.2%, while the CPIH services annual rate rose from 3.6% to 3.9%.
Core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 2.8% in the 12 months to September 2026, up from 2.6% in August. The CPI goods annual rate rose from 2.7% to 3.2%, while the CPI services annual rate rose from 3.4% to 3.7%.
• This is a developing story, please check back later for more details and reaction.