UK inflation hits 3.5% as fuel prices surge and Jackdaw gasfield gets approval
UK consumer inflation rose to 3.5% driven by a sharp jump in motor fuel costs, and the government approved the Jackdaw North Sea gasfield.
The Office for National Statistics said UK CPI increased to 3.5% in September, outpacing forecasts, as motor fuel prices surged to the strongest rise since August 2022, with diesel exceeding £2 per litre and petrol above £1.70. Core CPI also rose to 2.8%. At the same time, energy secretary Miatta Fahnbulleh confirmed approval of the Jackdaw gasfield in the North Sea, pledging gas deliveries from this winter to bolster energy security and reduce reliance on imported fuels.
Environmental charity ClientEarth condemned the decision, arguing it entrenches carbon emissions and threatens climate targets. Chancellor John Healey unveiled a new Energy Wealth Fund with a £2 billion initial contribution to channel fossil-fuel revenues into future clean-energy investments. The government also highlighted plans for new nuclear and small modular reactors, while the Bank of England is expected to raise interest rates at its next meeting.
Why it matters
Higher fuel costs lift inflation and the gasfield approval highlights the tension between energy security and climate commitments.
How this story developed
- Sep 15 UK fuel prices hit four-year highs as oil market turmoil continues
- Sep 26 President Donald Trump announced new fuel-economy rules that scrap the electric-vehicle mandate introduced under Joe Biden.
- Sep 28 The 2031 fuel‑economy target was lowered to roughly 34.9 mpg.
- Sep 30 Diesel prices have risen to a record level, with a full tank now costing about £110.
- Oct 5 G7 nations agreed to tap emergency reserves after the United States signaled it would not impose a diesel export ban.
- Oct 14 President Trump took steps to release diesel stocks and negotiate with Russia.
- Oct 17 President Donald Trump signed an executive order postponing new U.S. sanctions on Russia, arguing a national-security waiver is needed.
- Oct 17 Spain extended its 20‑cent‑per‑litre fuel subsidy beyond the planned November 1 expiry.
- Oct 17 The House Foreign Affairs Committee posted legislation to block financing for Russian oil projects and tighten sanctions.
- Oct 17 Ukrainian President Volodymyr Zelensky denounced encouragement to continue attacks, U.S. Senator Richard Blumenthal accused Trump of “flattering Vladimir Putin”, and Russian envoy Kirill Dmitriev praised the decision.
- Oct 17 The executive order states the waiver will remain in effect until the president or senior officials determine further action.
- Oct 18 Secretary of State Marco Rubio said the administration will study the impact of the suspension on the global economy.
- Oct 21 September UK CPI data showing a 3.5% annual rise has been released.
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