UK Inflation Rises to 3.5% in September

The UK’s latest inflation figures, released this morning, show that inflation rose to 3.5% in the year to September, up from 3.1% in August.

The increase is higher than many economists had anticipated, with rising fuel costs and the knock-on effect on the price of everyday goods believed to be key contributing factors.

Our Director, Jack, comments:

“Inflation has been expected to rise for some time, as the ongoing conflict in the Middle East continues to disrupt oil supplies and push up fuel prices. However, today’s figures are higher than many had anticipated, which could create further challenges for mortgage holders.

“The Bank of England aims to keep inflation at around 2%, and this higher-than-expected reading could influence its decision-making ahead of the next Monetary Policy Committee meeting in November.

“While the possibility of a Base Rate increase has already been factored into the financial markets that influence fixed-rate mortgage pricing, the reaction to today’s figures, alongside next week’s Budget, will be important to watch. Any further market volatility could put additional upward pressure on mortgage rates, which are already considered high by many borrowers.”