Surging fuel prices push UK inflation rate to 3.5% ahead of Budget

UK inflation rose from 3.1% to 3.5% in the year to September, its highest rate since October 2025, driven in part by rising petrol and diesel prices. Average petrol rose by 8.2p to 169.5p per litre, while diesel reached 192.5p, amid oil supply disruptions linked to conflicts in the Middle East and Ukraine. The figures were released a week before Chancellor John Healey’s first Budget, as government borrowing reached nearly £25bn in September. Healey defended the government’s fiscal rules, while the Conservatives accused Labour of losing control of the economy.