UK — The Office for National Statistics reported on Oct. 21 that the Consumer Prices Index (CPI) rose by 3.5% in the 12 months to September 2026, up from 3.1% in August 2026. The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.6% in the 12 months to September 2026, increasing from a rate of 3.3% in August 2026.

Transport, particularly motor fuels, made the largest upward contribution to the monthly change in both CPIH and CPI annual rates in September 2026. Motor fuel prices rose by 29.8% in the 12 months to September 2026, with the average price of petrol standing at 169.5 pence per litre and diesel at 192.5 pence per litre. Petrol prices increased by 8.2 pence per litre between August and September 2026, while diesel prices rose by 10.7 pence per litre during the same period.

Air fares fell by 19.5% between August and September 2026. Prices in the transport division rose by 6.6% in the 12 months to September 2026, compared with a 4.6% increase in the 12 months to August 2026. Despite the annual rise, transport prices fell by 0.4% on a monthly basis in September 2026.

Prices in the restaurants and hotels division rose by 3.8% in the 12 months to September 2026, down from a 4.1% increase in the 12 months to August 2026. Food and non-alcoholic beverage prices fell by 0.2% on a monthly basis in September 2026, with the 12-month inflation rate for the category standing at 1.3%.

Core CPIH rose by 3.1% in the 12 months to September 2026, up from 2.9% in August 2026. Core CPI rose by 2.8% in the 12 months to September 2026. Owner occupiers’ housing (OOH) costs rose by 4.0% in the 12 months to September 2026, with the annual contribution from OOH costs rising to 0.70 percentage points. The largest contributing division to CPI was transport with a 0.94 percentage point contribution in September 2026, while the largest contributing division to CPIH was housing and household services with a 1.39 percentage point contribution.

The UK's CPI inflation rate of 3.5% was higher than the inflation rate of France (3.4%) and Germany (3.3%) in September 2026. The annual RPI inflation rate was 3.9% in September 2026. The Food and Drink Federation expects food inflation to arrive later and persist for longer.