UK Inflation Rises to 3.5% as Fuel Prices Add Pressure on Household Budgets

UK inflation rose from 3.1% in August to 3.5% in September 2026, driven largely by higher petrol and diesel prices. Average petrol prices increased by 8.2p per litre, while diesel rose by 10.7p. Higher fuel costs can raise transport, delivery and production expenses for businesses. These costs may eventually lead to higher prices for food, services and other everyday items. Inflation measures how quickly prices are rising, not whether prices have fallen. The Bank of England will assess whether the fuel-price surge is likely to spread across the wider economy before deciding on interest rates.

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