UK inflation climbed to 3.5% in September, its highest level in nearly a year, as rising petrol and diesel costs pushed up the cost of living, new data shows.
The Consumer Prices Index (CPI) rose from 3.1% in August, the Office for National Statistics (ONS) revealed. This is the highest figure since the 3.6% recorded in October last year and surpasses the 3.4% that most economists had expected.
Transport costs drive inflation
Transport costs were the single largest contributor to the upturn, with motor fuels particularly significant. Average petrol and diesel prices hit their highest point in four years during September, the ONS confirmed.
ONS chief economist Grant Fitzner said: "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."
Other price pressures
Other upward pressures included airfares and, to a lesser extent, computer games and live events, which are often volatile. These were partially offset by hotel stays, where prices rose by less than this time last year.
"The annual cost of both raw materials and goods leaving factories continued to rise, driven by higher crude oil and petrol prices, respectively," Fitzner added.
