UK annual inflation rose to 3.5% for September 2026, according to data released on 21 October. The reading came in above the market forecast of 3.4%. It was also higher than the previous period, which stood at 3.1%.
What the figure measures
The annual inflation rate shows how much consumer prices have risen over the past twelve months. A reading of 3.5% means that prices, on average, were 3.5% higher than a year earlier. The figure is closely watched because it feeds into household budgets, wage negotiations and the policy decisions of the Bank of England.
The rise from 3.1% to 3.5% means that price increases quickened over the period. Economists had expected a smaller move, so the outcome was above forecast as well as above the earlier reading.
Data for the period was published at 06:00 GMT on 21 October.
The United States recorded annual inflation of 3.7% for September 2026, a figure that sits near its 31-day high. The US and UK figures measure different baskets of goods and services and are not directly comparable.
Related: US Inflation Rate Hits 3.7% in September · Canada Inflation Rate Hits 3.1% vs 3.2% Forecast
Data: FRED — St. Louis Fed
