Economy · Inflation & prices · 22 October 2026
Annual CPI inflation rises to 3.5 per cent in September
Annual CPI inflation increased to 3.5 per cent in September, up from 3.1 per cent in the previous month, according to the National Institute of Economic and Social Research. Monthly price growth stood at 0.4 per cent in 2026, compared with 0 per cent in 2025.
The National Institute of Economic and Social Research has published data showing that annual CPI inflation reached 3.5 per cent in September. This represents an increase of 0.4 percentage points from the 3.1 per cent recorded in the previous month. The monthly price growth for September 2026 was 0.4 per cent, which contrasts with 0 per cent in the same month in 2025. This monthly rate corresponds to an annualised figure of 4.9 per cent.
Sectoral breakdowns indicate that services inflation rose to 3.7 per cent from 3.5 per cent, while goods inflation increased to 3.2 per cent from 2.7 per cent. Core inflation, excluding food and energy, moved to 2.8 per cent from 2.6 per cent. Transport was the largest driver of the change in headline inflation, adding 0.25 percentage points. Recreation and culture contributed 0.10 percentage points, and housing and household services added 0.06 percentage points. Restaurants and hotels saw a decrease of 0.04 percentage points. Eight sectors registered price increases, while two registered falls.
Wage increases excluding bonuses for the period from June to August 2026 were recorded at 3.7 per cent. The announcement notes that energy supply issues linked to the American conflict in Iran are contributing to general price inflation. The Bank of England is expected to face pressure to tighten policy as a result of the rising inflation figures.
Written by StreetOwl from National Institute of Economic and Social Research, a think tank’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.
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