September’s Consumer Price Index data showed UK inflation at 3.5%, a rise driven mainly by higher fuel costs, airfares and live‑event tickets. The figure sits slightly above analyst forecasts, adding a new hurdle for Chancellor John Healey as he prepares next week’s Budget.
At the same time, government borrowing in September surpassed expectations, pushing total public debt past the £3 trillion mark. The combined effect of higher inflation and increased borrowing could limit the Treasury’s ability to offer fresh financial relief to households.
The 3.5% inflation reading will also feed into benefit calculations from April next year, potentially altering payments for eligible families. Meanwhile, the Bank of England’s 2% target remains out of reach, signalling continued pressure to curb price rises.
