EL7.AI
Macro EconomyMedium•21 October 2026•
1 min read

UK Annual Inflation Rises to 3.5% in September, Exceeding Market Forecasts

Key Facts

1UK annual CPI rose to 3.5% in September, exceeding the expected 3.4%.
2Annual core CPI was recorded at 2.8% in September, matching market expectations.

UK annual CPI rose to 3.5% in September, exceeding the expected 3.4%. According to investinglive.com, this figure represents an acceleration from 3.1% in the previous month, while annual core CPI was recorded at 2.8%, matching market expectations.

This inflation data follows other official releases showing a strengthening labor market, with the unemployment rate falling to 4.7% as of October 20, 2026. Additionally, monthly Gross Domestic Product grew by 0.1% on October 15, 2026, contributing to the broader economic context ahead of upcoming monetary policy assessments.

Bank of England Governor Andrew Bailey is scheduled to deliver a speech later today, October 21, 2026, while markets await the release of annual Retail Sales data on October 23, 2026.