Increasing fuel prices push UK inflation rate to 3.5% ahead of Budgetpublished at 10:31 BST
10:31 BST
Image source, Getty Images
The UK inflation rate was 3.5% in the year to September, driven by soaring petrol and diesel prices.
This latest 3.5% figure was slightly higher than economists expected, and marks the third successive increase in inflation rate.
Office for National Statistics (ONS) chief economist Grant Fitzner said fuel prices were the main driver, with diesel at its highest price since July 2022, but that the rising price of airfares, computer games and live events also contributed.
“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.
As well as prices rising faster than expected in the year to September, the UK government also borrowed more than it had anticipated.
Reacting to the figures, Chancellor John Healey says “conflicts in the Middle East and Europe” were to blame for rising prices, adding that his Budget next week will give families and businesses “breathing space”.
While Conservative the shadow chancellor says the figures show Labour has “lost control” of the economy and must take “urgent action” to tackle the deficit in the upcoming budget.