The Consumer Prices Index (CPI) rate of inflation rose to 3.5% in September, up from 3.1% in August, according to the Office for National Statistics. The figure is closely watched by economists because it is typically used to determine the level at which many benefits will increase.
Inflation rise ahead of Budget
The increase comes ahead of a make-or-break Budget, and has been described as a major blow for Andy Burnham. The September inflation rate is significant as it often sets the benchmark for benefit uprating decisions.
Impact on benefits and policy
The ONS confirmed the latest CPI reading, which marks a notable acceleration in price growth. The data will inform government decisions on benefit levels, with the Budget expected to address these adjustments.
