UK inflation jumps to 3.5%
U.K. inflation rose by a hotter-than-expected 3.5% in the 12 months to September, driven by the surging cost of motor fuels.
TL;DR
- U.K. inflation rose to 3.5% in the 12 months to September, exceeding economists' forecasts.
- The surge was driven by a 29.8% increase in motor fuel prices, the highest since August 2022.
- This marks a continuation of the upward trend in U.K. inflation, which has reached its highest point in a year.
- Services inflation has also accelerated, raising concerns about broader inflationary pressures.
- Markets are pricing in a high probability of a 25 basis points interest rate hike by the Bank of England next month and potentially another in December.