{
  "id": 15858161,
  "title": "Inflation leaps above expectations to 3.5 per cent",
  "url": "https://urgent.news/2026/10/21/inflation-leaps-above-expectations-to-3-5-per-cent",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-21T06:24:18.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/inflation-leaps-above-expectations-to-3-5-per-cent/"
  },
  "original_language": "en",
  "account": "UK inflation surged to 3.5 per cent in the 12 months leading up to September, surpassing expectations and signaling potential challenges for the economy. This increase in consumer price index (CPI) was driven primarily by surging energy costs, particularly diesel, following the Iran war. Brent crude oil prices have reached between $95 and nearly $100 per barrel, a significant rise from around $70 before the US and Israel's strikes in Iran. The Bank of England had previously predicted inflation would exceed four per cent, with winter months potentially exacerbating the issue. Head of global economics at Schroders, David Rees, described the situation as a \"perfect storm\" of inflation pressures. Food and manufactured goods prices are also expected to rise, potentially pushing CPI towards four per cent. Grant Fitzner, chief economist at the Office for National Statistics, highlighted energy prices as the main driver, with fuel costs reaching their highest level since July 2022. Other factors contributing to inflation include airfares and computer games. Chancellor John Healey acknowledged the impact of Middle Eastern and European conflicts on inflation, stating that the UK's fiscal discipline remains strong. Healey announced the approval of North Sea gas extraction from the Jackdaw field, with revenues invested in the clean energy future and British workers. The Bank of England's Monetary Policy Committee is closely watching \"second round effects,\" where higher costs could lead workers to demand pay raises, further driving prices up. The Bank has decided to keep interest rates unchanged at 3.75 per cent. Economists predict the MPC might raise rates at its next meeting in November to curb inflation.",
  "summary": "Inflation jumped to 3.5 per cent in the 12 months to September as the UK economy looks set to suffer the damaging effects of energy price increases caused by the Iran war over the coming months. The consumer price index (CPI) reading rose above market expectations. This was also above last month’s figure of 3.1 [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}