UK Inflation Hits 3.5% as 29.8% Fuel Surge Lifts November Rate Hike Odds
Updated
Updated · CNBC · Oct 21
UK Inflation Hits 3.5% as 29.8% Fuel Surge Lifts November Rate Hike Odds
3 articles · Updated · CNBC · Oct 21
Summary
September consumer inflation accelerated to 3.5% from 3.1% in August, topping the 3.4% Reuters poll and marking the highest annual reading in almost a year.
Motor fuel prices jumped 29.8% from a year earlier—the fastest fuel inflation since August 2022—while services inflation also picked up, reinforcing concern about broader second-round price pressures.
LSEG data showed markets pricing a 98% chance of a 25-basis-point Bank of England hike to 4% next month, with most traders also expecting another move in December.
The hotter reading complicates Chancellor John Healey's Autumn Budget next week as national debt topped £3 trillion in September and higher borrowing costs squeeze room for cost-of-living support.