UK inflation rises to 3.5% as fuel costs climb

UK annual consumer price inflation rose to 3.5% in September, up from 3.1% in August and above the 3.4% economists had expected, the Office for National Statistics reported Wednesday. The increase put inflation further above the Bank of England’s 2% target. Consumer prices rose 0.4% during the month. Transport, particularly motor fuels, made the largest upward contribution to the change in the annual rate, according to the ONS. Petrol averaged 169.5 pence per litre in September, 8.2 pence more than in August, while diesel averaged 192.5 pence, up 10.7 pence. Those were the highest monthly averages for petrol and diesel since August and July 2022, respectively. Motor fuel prices were 29.8% higher than a year earlier, compared with a 23% annual increase in August. ONS chief economist Grant Fitzner also identified airfares and, to a lesser extent, computer games and live events as upward pressures. Slower price increases for hotels and similar accommodation partly offset the rise. The ONS said annual inflation for services increased to 3.7% from 3.4% in August. Core CPI, which excludes food, energy, alcohol and tobacco, rose to 2.8% from 2.6%. The overall increase was not shared...