Inflation rises to 3.5% as diesel and petrol prices push up cost of living
Petrol and diesel price rises have hit drivers at the pumps(Image: Getty)
TL;DR
- Inflation rose to 3.5% in September, up from 3.1% in August, marking the highest level since October 2025.
- Higher fuel prices, particularly diesel exceeding £2 a litre, were the main driver of inflation.
- Disruptions to oil production in the Middle East due to the Iran war have contributed to rising fuel prices.
- Other factors contributing to inflation include airfares, computer games, and live events, partially offset by lower hotel prices.
- Energy bills are predicted to rise further this winter, with Ofgem's price cap forecast to increase in January.
- The Bank of England targets 2% inflation and uses interest rates to control price rises by influencing spending and demand.