UK inflation rose to 3.5%, while September borrowing jumped to nearly £25bn.

Price rises accelerated from 3.1% in August to 3.5% in the year to September, the highest in almost a year.

Higher petrol and diesel prices drove the increase; motor fuel prices rose 29.8% over the year.

Government borrowing reached nearly £25bn in September, with the financial year so far £6bn above official forecasts.

The figures add pressure before next week's Budget, as Chancellor John Healey says the main tax rates will not rise.

💬 How are higher fuel costs changing daily budgets in your area?

Source: BBC, CNBC

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