Industry & market news

UK consumer prices

Motor fuels help push UK inflation higher

Consumer prices were 3.5% higher than a year earlier in September. Services inflation also picked up from August.

MCM Editorial Team Published

Illustration: Groceries on the counter of a family kitchen.

UK annual consumer price inflation rose from 3.1% in August to 3.5% in September. Transport, particularly motor fuels, made the largest contribution to the acceleration. Restaurants and hotels partly offset it. A downward contribution to a change in the annual rate does not necessarily mean a restaurant meal got cheaper: it depends on how prices moved relative to the comparable period a year earlier.

Core inflation, which excludes energy, food, alcohol and tobacco, increased from 2.6% to 2.8%. Services inflation moved from 3.4% to 3.7%. Those figures suggest that the change was not confined to what households paid to fill a fuel tank.

A second measure offers a different view of household costs. CPIH, which includes the housing costs of owner occupiers, rose 3.6% on a year earlier. The difference between that figure and the CPI reading reflects what each index covers and how its components are weighted.