Fastrack · UK Inflation Rises to 3.5% on Higher Fuel Costs

UK inflation rose to 3.5% in September, its highest rate in almost a year. Canada's rate climbed to 3.1% the same month.

3.4% was the UK figure economists had forecast.
2.9% in July, 3.1% in August: UK inflation has risen steadily.
27.8% jump in Canadian gasoline prices led that country's increase.
57.8% rise in Canadian fuel oil costs hit Atlantic Canada homes.

Why it matters: Fuel prices are pushing inflation up in both countries. UK petrol and diesel prices reached a four-year high in September.

UK inflation is well above the Bank of England's 2% target.
A UK rate rise would raise costs for borrowers, including mortgage holders.

The story so far

8 steps · since Oct 13

Oct 13Healey Plans £2bn Bank Tax Hike in First Budget5 sources
Oct 15Bank Shares Fall on Expected Budget Tax Rise6 sources
Oct 19
Oct 196:09 AMUK Inflation Rises to 3.5% on Higher Fuel CostsYou are here
Oct 19–20
Oct 207:39 AMUK Borrowing Tops Forecasts Ahead of Budget8 sourcesLatest

How 9 sources split on this story

Source landscape

Factuality

High

Mixed

Low

Strong LeftLeftLean LeftCenterLean RightRightStrong Right

Political Bias

Coverage by lean% of 9 sources

9 sources · 21 articles · 56% Center coverage

Where they split: Outlets agree on the figures but differ on emphasis: rate-hike expectations, household pain, or political cost to the Labour government.

Center coverage, 5 sources: The center focuses on the data and what it means for interest rate expectations.

CNBC21h7 simple inflation hacks to save money every month CTV News3dHigher gas prices drove inflation up to 3.1% in September: StatCan Reuters1dSouth Africa consumer inflation edges up to 4.5% y/y in September BBC News1dSurging fuel prices push UK inflation rate to 3.5% ahead of Budget Fortune1dUK Treasury chief vows to give families 'some breathing space' as inflation runs hot, highest in a year | Fortune

Left coverage, 1 sources: The left frames the story around rising living costs, driven mainly by fuel.

The Independent1dInterest rate hike ‘firmly on table’ after inflation rises to 11-month high

Right coverage, 3 sources: The right emphasizes the coming rate decision, pressure on households, and a setback for Labour before the Budget.

The Sun1dInflation SOARS to highest level this year in blow to Labour days ahead of the Budget – what it means for your money Wall Street Journal1dU.K. Inflation Jumps Again on Energy Costs Daily Mail1dInflation hits 3.5% as rising cost of fuel sends prices soaring to highest level for a year - sparking fresh headache for Andy Burnham ahead of next week's Budget

What’s next: Investors increasingly expect the Bank of England to raise rates at its Nov. 5 meeting. It would be the first rise since the U.S.-Iran war began.

The UK figures arrive shortly before the government's Budget.
Will fuel prices keep rising while the Middle East war continues?
Will Canada's central bank respond to its own inflation increase?