UK consumer-price growth accelerated to 3.5% in September 2026.
Why it matters: The increase adds to the Bank of England's policy challenge ahead of its November 5, 2026 decision. Inflation also rose across core, services and goods measures, not only in fuel.
- CPI rose 3.5% year over year in September 2026, up from 3.1% in August.
- Motor-fuel prices rose 29.8% over the year; petrol reached 169.5 pence per litre and diesel 192.5 pence.
- Core CPI increased to 2.8% from 2.6%, while services inflation rose to 3.7% from 3.4%.
- The Bank of England held Bank Rate at 3.75% on September 16, 2026, by a 6-3 vote.
UK consumer-price growth accelerated in September 2026, putting fresh focus on the Bank of England's November 5 policy decision.
The Consumer Prices Index rose 3.5% in the 12 months to September, up from 3.1% in August, according to the Office for National Statistics.
Transport, particularly motor fuels, made the largest upward contribution to the monthly change in the annual inflation rate. Petrol prices rose 8.2 pence per litre between August and September, while diesel increased 10.7 pence. Over the year, motor-fuel prices rose 29.8%, with petrol at 169.5 pence per litre and diesel at 192.5 pence.
Price growth also accelerated beyond fuel. Core CPI, which excludes energy, food, alcohol and tobacco, rose to 2.8% from 2.6%. Services inflation increased to 3.7% from 3.4%, while goods inflation rose to 3.2% from 2.7%.
The data follow a divided policy meeting. The Bank held Bank Rate at 3.75% on September 16, 2026, with three of nine policymakers voting for a 25-basis-point increase to 4%. The committee said it stood ready to act to keep inflation on track for its 2% target, according to the Bank's monetary-policy summary and minutes.
The Bank had projected inflation would reach around 3.75% in the fourth quarter of 2026 and slightly exceed 4% in the first quarter of 2027, based on energy prices prevailing in September. The latest release comes before the government's October 28, 2026 Budget, leaving investors to assess the inflation data alongside the government's fiscal plans.
By the numbers
- 3.5% - UK CPI inflation in September 2026, versus 3.1% in August
- 29.8% - Annual increase in motor-fuel prices
- 6-3 - Bank of England vote to hold Bank Rate at 3.75% on September 16, 2026
Yes, but: The September inflation increase was driven mainly by motor fuels, while the next rate decision will depend on the broader inflation outlook and the Bank's assessment of incoming data.
What's next: The government is scheduled to present its Budget on October 28, 2026. The Bank of England's next policy decision is due on November 5, 2026.