UK inflation rises to 3.5% in September — The Guardian

Annual inflation in the United Kingdom accelerated to 3.5% in September, up from 3.1% in August. The figure exceeded economists' expectations, who had forecast consumer price index growth of 3.4%. The Guardian reports, citing the Office for National Statistics.

Fuel prices rise

The acceleration in price growth is linked to a surge in fuel costs amid the war in the Middle East. Oil and gas prices have been rising since the end of February, when the United States and Israel launched a war against Iran. The effective closure of the Strait of Hormuz to most fossil fuel shipments pushed the price of Brent crude well above $100 per barrel.

The price of petrol in the country exceeded £1.70 per litre. A litre of diesel rose to a record high of more than £2 this month.

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Rate expectations

Bank of England officials are expected to potentially raise interest rates at next month's meeting. The reason is concern that inflation will exceed 4% next year — more than twice the Bank of England's 2% target.

Higher oil and gas prices are also expected to affect the cost of other goods and services, including commercial transport and home heating.