UK inflation jumps to 3.5% on rising motor fuels cost; UK approves Jackdaw gasfield – business live

UK CPI inflation rose to 3.5% in September, exceeding forecasts and accelerating from 3.1% in August, as motor fuel costs climbed sharply. The rise may add pressure on households and strengthen expectations that the Bank of England will raise interest rates next month.

Transport, especially motor fuels, was the biggest upward contributor; restaurants and hotels partly offset the increase. Core inflation rose to 2.8%, while petrol exceeded £1.70 a litre and diesel topped £2. The government also approved the Jackdaw North Sea gasfield, saying it will supply gas from this winter, and announced a £2bn initial contribution to an Energy Wealth Fund for the climate transition.