UK inflation rises to 3.5% in September

UK inflation rose to 3.5% in the year to September, the Office for National Statistics said Wednesday, exceeding economists’ 3.4% forecast and rising from 3.1% in August. The figure is above the Bank of England’s 2% target. ONS chief economist Grant Fitzner said higher fuel prices were the main driver of the increase. He also cited airfares and, to a lesser extent, computer games and live events as upward pressures. Diesel prices had risen above £2 a litre at the start of October, according to figures cited in reports. The ONS reported that services inflation increased to 3.7% in the year to September, while core inflation, which excludes volatile items such as energy, rose to 2.8% from 2.6% in August. The September CPI figure measures price changes during that month; an increase in the Ofgem energy price cap took effect on October 1 and was not included. The inflation reading is one of the measures used in decisions about benefit and pension increases, though the rules differ among payments. For the 2027-28 Universal Credit standard allowance, legislation provides an additional 3.1% uplift alongside the CPI-based increase. For the state pension triple lock, the annual rise is...