Britain's annual inflation rate accelerated to 3.5% in the 12 months to September, rising from 3.1%. According to the Office for National Statistics, this hotter-than-expected increase represents an 11-month high.
The surge was driven by the rising cost of motor fuels, specifically petrol and diesel. These price increases are linked to the ongoing war between the U.S. and Iran.
As inflation rises further above the Bank of England's target, economists expect the bank to raise interest rates next month. Such a move would be the first rate hike in more than three years and the first since the start of the conflict between the U.S. and Iran.
This economic pressure comes as the UK government prepares to present its autumn budget and as public sector net debt surpasses £3 trillion.