UK CPI rose to 3.5% in September from 3.1% in August, above a 3.4% Refinitiv consensus, ONS data showed. The print reinforces market bets that the Bank of England will raise Bank Rate by 25bps next month to 4%. The MPC last month said energy-driven inflation could push CPI to about 4% in Q1, double its 2% target, and members remain divided over whether an energy-price shock will produce broader, more persistent price pressures. A 25bp hike would be the Bank's first such move since the Iran war s

2026-10-21

UK CPI rose to 3.5% in September from 3.1% in August, above a 3.4% Refinitiv consensus, ONS data showed. The print reinforces market bets that the Bank of England will raise Bank Rate by 25bps next month to 4%. The MPC last month said energy-driven inflation could push CPI to about 4% in Q1, double its 2% target, and members remain divided over whether an energy-price shock will produce broader, more persistent price pressures. A 25bp hike would be the Bank's first such move since the Iran war sent global energy prices sharply higher.