UK inflation rises to 3.5 percent ahead of autumn budget

me public sector debt passed £3 trillion, annual consumer price inflation in the United Kingdom accelerated to 3.5% in September 2026, Euronews reported based on figures from the Office for National Statistics. The rate rose from 3.1% in August, reaching its highest level since October 2025. [1]

Euronews reported that the acceleration in inflation exceeded official expectations. The primary driver behind the monthly increase was higher fuel prices, including a rise in average diesel costs across the country. [1]

The inflation figures arrive one week before the Labour government is scheduled to present its annual budget on 28 October 2026. According to Euronews, the budget is expected to address ongoing cost-of-living pressures facing British households. [1]

As FTMQ News reported earlier, international economic conditions have faced widespread inflation pressure, leading central banks such as the Reserve Bank of India to raise benchmark interest rates in response to rising costs linked to conflict involving Iran. [2]