UK inflation rate: 3.5% in September 2026
UK CPI inflation was 3.5% in the 12 months to September 2026, up from 3.1% in August, the Office for National Statistics said on 21 October 2026. Prices rose 0.4% in the month alone. Below: the latest figures, what drove them, where Bank Rate stands, and a calculator for what inflation does to your savings. We update this page on each ONS release day.
Latest UK inflation figures (September 2026)
| Measure (12-month rate) | September 2026 | August 2026 |
|---|---|---|
| CPI (Consumer Prices Index) | 3.5% | 3.1% |
| CPIH (CPI plus owner occupiers' housing costs) | 3.6% | 3.3% |
| Core CPI (excluding energy, food, alcohol and tobacco) | 2.8% | 2.6% |
| CPI services | 3.7% | 3.4% |
| CPI goods | 3.2% | 2.7% |
Source: ONS, Consumer price inflation, UK: September 2026 (released 21 October 2026). Next release: 18 November 2026.
What pushed inflation up
- Motor fuels. The ONS says transport, particularly motor fuels, made the largest upward contribution. Petrol averaged 169.5p a litre in September, up 8.2p in a month and the highest since August 2022. Diesel averaged 192.5p, the highest since July 2022. Motor fuel prices were 29.8% higher than a year earlier.
- Housing and household services rose 4.5% over the year, up from 4.3%, mainly from owner occupiers' housing costs (4.0%), with an upward effect from kerosene.
- Food and non-alcoholic drinks rose 1.3%, unchanged from August. The ONS says the rate was last lower in September 2021.
- Restaurants and hotels made the largest partly offsetting downward contribution (3.8%, down from 4.1%).
Our calculation: petrol rose 8.2p a litre between August and September, so filling a 50-litre tank cost about £4.10 more than a month earlier.
Inflation and Bank Rate
The Bank of England's target for CPI inflation is 2%, so September's 3.5% is 1.5 percentage points above it. Bank Rate is 3.75%: the Monetary Policy Committee held it there on 17 September 2026, and its next decision is due on 5 November 2026. On 17 September the Governor, Andrew Bailey, said that the longer energy price volatility persists, “the more likely it is we will need to raise Bank Rate.”
What inflation does to your savings
Enter your savings and the interest rate you earn. Inflation starts at the latest CPI figure, 3.5%; change it to test other rates.
One year, interest paid once, before any tax on interest. The 4% rate is only an example: enter your own. Use the savings interest tax calculator to see whether you pay tax on the interest.
- Interest earned£0
- Balance after one year£0
- Worth in today's prices£0
- Real interest rate0%
- Rate needed to keep up with inflation0%
Watch: September's inflation figures in about a minute
Our UniMind Pro Markets short walks through the same ONS numbers: UK inflation September 2026: up to 3.5%, petrol highest since 2022.
Related calculators and guides
- Savings interest tax calculator — Personal Savings Allowance and starting rate, 2026/27.
- Stocks and Shares ISA calculator and ISA allowance rules 2026/27.
- UK mortgage calculator — see what a different rate does to a monthly payment.
- Budget 2026: what it means for you — the Budget is on 28 October.
- All UK calculators
Frequently asked questions
What is the UK inflation rate now?
The Consumer Prices Index (CPI) rose by 3.5% in the 12 months to September 2026, up from 3.1% in August 2026, according to the Office for National Statistics release of 21 October 2026. CPIH, which includes owner occupiers' housing costs, rose by 3.6%.
What pushed UK inflation up in September 2026?
The ONS says the largest upward contribution came from transport, particularly motor fuels. Average petrol prices rose 8.2 pence per litre in the month to 169.5p, the highest since August 2022, and motor fuel prices were 29.8% higher than a year earlier. The largest partly offsetting downward contribution came from restaurants and hotels.
When is the next UK inflation figure?
The ONS lists the next consumer price inflation release for 18 November 2026. We update this page on release day.
How does inflation affect my savings?
If your savings rate is lower than inflation, the money buys less at the end of the year than at the start, even though the balance has gone up. Use the calculator on this page to compare your own rate with inflation.
Sources
- Office for National Statistics — Consumer price inflation, UK: September 2026 — released and read 21 October 2026
- Bank of England — Interest rates and Bank Rate — read 21 October 2026
All inflation figures are quoted from the ONS bulletin. The £4.10 tank example and the calculator results are our own arithmetic.
Prepared and reviewed by the Calcistry editorial team · Updated · Editorial policy
General information, not financial advice. Past inflation does not tell you future inflation; check current rates before making decisions.