<p>Increase in annual price growth in September comes amid fears rate will breach 4% next year</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/oct/21/uk-inflation-jump-rising-motor-fuels-cost-jackdaw-gas-field-latest-news-updates">Business live – latest updates</a></p></li></ul><p>UK inflation climbed by more than expected in September to 3.5% after a surge in prices from the conflict in the Middle East that has pushed up the cost of diesel to record levels.</p><p>In a blow to John Healey before his first budget as chancellor in a week’s time, the Office for National Statistics said annual inflation rose <a href="https://www.theguardian.com/business/2026/sep/16/uk-inflation-rises-pressure-on-households-bank-of-england-interest-rates">from 3.1% in August</a>. Economists had forecast an increase in the consumer prices index (CPI) to 3.4%.</p> <a href="https://www.theguardian.com/business/2026/oct/21/inflation-rises-middle-east-conflict-drives-up-fuel-prices">Continue reading...</a>