UK inflation rises to 3.5% as Iran war pushes fuel costs up

Summarised from 2 outlets · Updated 21 Oct, 12:08 · Archive

UK inflation rose to 3.5% in September, its highest rate in almost a year, driven by rising fuel prices linked to the Iran war.

Inflation in the UK rose to 3.5% in the year to September, up from 3.1% in August and the highest reading since October last year, according to the Office for National Statistics. The figure exceeded the 3.4% most economists had forecast.

The transport industry was the biggest contributor to the rise, particularly fuel prices. Motor fuels soared by 30% in the year to September, up from a 23% annual rise in August. The increases have been driven by the Iran war and bottlenecks in the Strait of Hormuz, which have squeezed global oil and gas supplies.

Economists expect the Bank of England to raise interest rates at its next meeting on 5 November, with most predicting an increase in the main rate to 4% from its current 3.75%. Suren Thiru, chief economist at ICAEW, said: 'With inflation increasing, the pieces are falling firmly into place for a November rate rise.' Treasury chief John Healey said his budget statement next week will aim to give businesses and families 'some breathing space' from rising living costs.

UK inflation rises to 3.5% as Iran war pushes fuel costs up — Image: News4Jax

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How it is being reported

UK inflation rise to highest in almost a year as Iran war drives fuel prices higherInflation in the U.K. has risen to its highest rate in almost a year as the Iran war continues to drive up fuel prices.News4Jax · 21 Oct, 11:44
UK inflation rise to highest in almost a year as Iran war drives fuel prices higherInflation in the U.K. has risen to its highest rate in almost a year as the Iran war continues to drive up fuel prices.Clickorlando · 21 Oct, 11:44

In this story: UK · Bank of England · Office for National Statistics · Iran · Strait of Hormuz · John Healey · Suren Thiru

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