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UK inflation jumps to 3.5% — cementing rate hike expectations

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Core Development: UK inflation jumps to 3.5% — cementing rate hike expectations
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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.

The U.K.'s Office for National Statistics said on Wednesday that the motor fuel inflation rate had hit its highest level since August 2022, when fuel costs surged in the wake of Russia's full-scale invasion of Ukraine.

Britain is a net energy importer, making it vulnerable to external energy shocks, such as the U.S.-Iran war and the subsequent struggle to move oil through the Strait of Hormuz.

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Official Publisher Attribution: This report is aggregated from CNBC. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
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