UK September Inflation Beats Expectations at 3.5% as Core Pressures Accelerate

The UK headline Consumer Price Index accelerated to 3.5% year-on-year in September, exceeding market forecasts of 3.4% and rising from 3.1% in August, according to the Office for National Statistics. On a monthly basis, CPI climbed 0.4% against a projected 0.3% gain. Core CPI rose to 2.8% from 2.6%, while services inflation picked up to 3.7% and goods inflation reached 3.2%. A surge in motor fuel inflation to 29.8% primarily drove the headline increase, reinforcing expectations that the Bank of England will maintain a restrictive policy stance.