UK inflation rises by more than expected to 3.5% as war drives up fuel prices

UK inflation rose to 3.5% in September, exceeding economists' forecasts of 3.4%. This increase is largely due to the surge in fuel prices, driven by the conflict in the Middle East, which has pushed the cost of diesel above £2 a litre. The higher inflation rate is a concern for the UK economy, as it may lead to higher interest rates and reduced consumer spending, potentially impacting the overall growth of the economy.

Why it matters

The increase in UK inflation is driven by the war, which is causing fuel prices to rise. This could lead to higher interest rates and affect consumer spending.

Market impact

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