UK inflation jumps to 3.5% — cementing rate hike expectations

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Skip NavigationJoin ICJoin ProLivestreamMenuA person shields themselves from the rain while walking near the Bank of England building on the day the Monetary Policy Committee lowered interest rates, in London, Britain, Dec.18, 2025. Toby Melville | Reuters

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.

Economists polled by Reuters had been forecasting an annual inflation rate of 3.4%.

September’s print marked a continuation of the U.K.’s upward trend for inflation, which came in at 3.1% in August and 2.9% in July. The September reading was the highest annual inflation figure in a year.

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