UK CPI (Sep YY) 3.5% vs. Exp. 3.4% (Prev. 3.1%); Services Y/Y 3.7% (exp. 3.6%, prev. 3.4%)

Inflation climbed notably in September to its highest annual rate in almost a year. Increased fuel prices were again the main driver, with the cost of diesel the highest since July 2022. Other upward pressures included airfares and, to a lesser extent, computer games and live events, which are often volatile. These were partially offset by the cost of hotel stays, where prices rose by less than this time last year. The annual cost of both raw materials and goods leaving factories continued to rise, driven by higher crude oil and petrol prices, respectively.