UK annual inflation rose to 3.5% in September, exceeding the expected 3.4% and reaching its highest level since October 2025. Core CPI met market expectations at 2.8%, driven by persistent energy and service price pressures. Consequently, markets are now pricing in a 96% probability of a 25 basis point rate hike by the Bank of England in November.
UK annual inflation accelerated to 3.5% in September, surpassing analyst estimates of 3.4% as price pressures remain persistent despite core inflation meeting expectations.
Read the full storyAnalysts expect UK headline inflation to rise to 3.4% in September, with markets pricing in a near-certain 25 basis point rate hike by the Bank of England in November.