UK inflation jumps to 3.5%: fuel almost 30% dearer in a year

On Wednesday 21 October 2026 the ONS reported that UK CPI inflation in September was 3.5% year on year, up from 3.1% in August. It is the highest reading since October 2025. Economists polled by Reuters had expected 3.4%, and the Bank of England’s July forecast assumed 3.0%. Prices rose by 0.4% in September alone.

Transport pushed inflation up most. Prices in this group were 6.6% higher than a year ago (4.6% in August), and motor fuel prices rose over the year by 29.8%. Reuters links rising energy costs to the war with Iran. Services inflation rose to 3.7% (from 3.4%), and core inflation – excluding energy, food, alcohol and tobacco – to 2.8% (from 2.6%). Goods prices rose by 3.2%, the most since September 2023.

Restaurants and hotels fared better – inflation there fell to 3.8% from 4.1%. Food and non-alcoholic drinks rose by only 1.3% over the year and even fell slightly in September (by 0.2%). The ONS will publish the next figures on 18 November 2026.

Editorial comment

For Polish businesses in the UK this is doubly bad news. First, commuting, deliveries and every trip in a company vehicle get more expensive. Transport, construction, cleaning firms and couriers will feel it most. Second, higher services inflation is an argument for the Bank of England to raise rates on 5 November. That would mean dearer loans and leasing. A week earlier, on 28 October, Chancellor John Healey will present the Budget – pressure to help households with energy bills is growing.

What to do

• Recalculate the cost of fuel in your quotes. If you have fixed rates for customers, consider a fuel surcharge or a shorter validity period for offers.
• Check whether your loan, lease or company card has a variable rate – a rate rise on 5 November is increasingly likely.
• Compare business fuel cards and plan routes to cut empty runs.
• Note in your diary: 28 October the Budget, 5 November the Bank of England decision, 18 November the next inflation data.

What do you think?

Do you feel this in your business? Tell us in the comments below the article. We will cover the most interesting views in future editions.

Sources

• ONS: Consumer price inflation, UK: September 2026
• Reuters (via Investing.com): UK inflation picks up more than expected to 3.5%

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