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UK inflation rises to 3.5% as motor fuel prices climb

The Office for National Statistics said CPI inflation rose to 3.5% in the 12 months to September 2026, up from 3.1% in August 2026, with motor fuels the largest upward contributor.

Chandraketu Tripathi
Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 21 Oct 2026
Last reviewed 21 Oct 2026
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InflationUpdated 21 October 2026

UK consumer price inflation rose to 3.5% in the 12 months to September 2026, up from 3.1% in August 2026, the Office for National Statistics said on 21 October 2026. Transport, particularly motor fuels, made the largest upward contribution to the monthly change.

TL;DR · LAST REVIEWED UK consumer price inflation rose to 3.5% in the 12 months to September 2026, up from 3.1% in August 2026, the Office for National Statistics said on 21 October 2026. Transport, particularly motor fuels, made the largest upward contribution to the monthly change.

  • CPI inflation was 3.5% in the 12 months to September 2026, up from 3.1% in August 2026.
  • On the month, CPI rose 0.4% in September 2026, against little change in September 2025.
  • CPIH was 3.6%, core CPI 2.8%, goods 3.2% and services 3.7%.
  • Transport, particularly motor fuels, made the largest upward contribution; restaurants and hotels made the largest partially offsetting downward contribution.

KEY FACTS

  • CPI, 12 months to Sep 2026: 3.5% (August: 3.1%)
  • CPIH: 3.6% (August: 3.3%)
  • Core CPI: 2.8% (August: 2.6%)
  • Goods / services: 3.2% / 3.7%
  • Biggest upward driver: Transport, particularly motor fuels
  • Next release: 18 November 2026

The headline figures

The Consumer Prices Index rose by 3.5% in the 12 months to September 2026, the Office for National Statistics said on 21 October 2026. That annual rate compares with 3.1% in August 2026, according to the same release.

On a monthly basis, CPI rose by 0.4% in September 2026. The ONS said this compares with little change in September 2025, so the month on month movement was larger than a year earlier.

CPIH, the measure that includes owner occupiers' housing costs, rose by 3.6% in the 12 months to September 2026. The ONS put the August 2026 CPIH rate at 3.3%.

CPI measures the change in prices of a basket of goods and services bought by households. CPIH adds owner occupiers' housing costs and council tax to that basket.

What pushed prices up

Transport, particularly motor fuels, made the largest upward contribution to the monthly change in the CPI, the ONS said. The contribution is measured against the movement in prices a year earlier.

Restaurants and hotels made the largest partially offsetting downward contribution to the monthly change. That offset reduced, but did not cancel, the upward pressure recorded elsewhere in the basket.

The ONS identifies contributions by comparing the price movement of each division of the basket with its movement in the same month a year earlier. The transport contribution was therefore driven by motor fuels moving differently in September 2026 than in September 2025.

The monthly CPI movement of 0.4% in September 2026 compares with little change in September 2025. The ONS said the September 2025 comparison point was little change.

Core, goods and services inflation

Core CPI rose by 2.8% in the 12 months to September 2026, up from 2.6% in August 2026. Core CPI excludes energy, food, alcohol and tobacco from the basket.

CPI goods inflation rose from 2.7% to 3.2% over the same period. Goods are the physical items in the basket, such as food, clothing and motor fuels.

CPI services inflation rose from 3.4% to 3.7%. Services cover work carried out for households, including restaurant meals, hotel stays and transport services.

The ONS publishes core, goods and services measures alongside the headline CPI rate. Each is calculated from the same basket of goods and services bought by households.

Housing costs released the same day

The ONS also reported on 21 October 2026 that average UK private rents were £1,406 a month in September 2026. That figure was up 3.8% on a year earlier and is provisional.

The average UK house price was £273,000 in August 2026, up 0.9% on a year earlier, the ONS said. That figure is also provisional.

The rent and house price figures were published on the same day as the September 2026 CPI release. They cover different periods, with rents for September 2026 and house prices for August 2026.

Owner occupiers' housing costs are included in CPIH but not in CPI. CPIH rose by 3.6% in the 12 months to September 2026, up from 3.3% in August 2026.

What happens next

The next CPI figures, for October 2026, are due on 18 November 2026, according to the ONS. That release will set out the annual and monthly rates for October 2026.

The September 2026 release set the annual CPI rate at 3.5%, the monthly rate at 0.4%, CPIH at 3.6%, core CPI at 2.8%, goods inflation at 3.2% and services inflation at 3.7%.

The ONS said transport, particularly motor fuels, made the largest upward contribution to the monthly change, while restaurants and hotels made the largest partially offsetting downward contribution.

The rent and house price figures published on 21 October 2026 were provisional. The ONS said average UK private rents were £1,406 a month in September 2026, up 3.8% on a year earlier, and the average UK house price was £273,000 in August 2026, up 0.9% on a year earlier.

Source: ONS: Consumer price inflation, UK: September 2026.

Related coverage on Kael Tripton: UK inflation rises to 3.1 percent as fuel and airfares climb, What Is Inflation?, CPI vs RPI: why the UK has two inflation numbers, UK Inflation Explained: How CPI Is Measured and What It Means for Your Money, Fed raises US rates: what it means for UK mortgages and savings.

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DISCLAIMER

Figures are as published by the ONS on 21 October 2026. Rent and house price figures are provisional and may be revised.

Frequently asked questions

What was the CPI inflation rate in September 2026?

The Consumer Prices Index rose by 3.5% in the 12 months to September 2026, up from 3.1% in August 2026, the Office for National Statistics said.

What drove the change in September 2026?

Transport, particularly motor fuels, made the largest upward contribution to the monthly change. Restaurants and hotels made the largest partially offsetting downward contribution.

What were core, goods and services inflation?

Core CPI rose by 2.8%, CPI goods inflation rose from 2.7% to 3.2% and CPI services inflation rose from 3.4% to 3.7%, the ONS said.

What did the ONS report on rents and house prices?

Average UK private rents were £1,406 a month in September 2026, up 3.8% on a year earlier (provisional). The average UK house price was £273,000 in August 2026, up 0.9% on a year earlier (provisional).

When are the next CPI figures published?

The next CPI figures, for October 2026, are due on 18 November 2026.

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Editorial Disclaimer

The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

Chandraketu Tripathi
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Lead editor of Kael Tripton. LBS MBA (Sloan Fellow), AI/ML postgraduate (IIIT Bangalore). 22 years in marketing and commercial roles across 23 markets. Covers UK money, tax and visas.

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