Inflation leaps above expectations to 3.5 per cent

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 per cent. The country is now expected to suffer acceleration in price growth after a sharp rise in oil prices since the Iran war began in late February began to filter through to the cost of goods and services for British households. The Brent crude oil price, an international benchmark, has jumped between $95 per barrel and nearly $100 per barrel this month, far above a level of around $70 before the US and Israel launched strikes in Iran. The Bank of England previously warned that inflation would exceed four per cent, with a projected increase in prices over the winter months set to add to pressure on Chancellor John Healey ahead of next week’s Budget. Perfect