Inflation has jumped to its highest level in almost a year, underlining the challenges facing John Healey, the Chancellor, ahead of his first Budget next week.

The consumer prices index climbed from 3.1pc in August to 3.5pc in September, according to the Office for National Statistics (ONS).

Inflation was ahead of the 3.4pc predicted by economists and is now at its highest level since October 2025.

The sharp rise was driven by soaring fuel costs as a result of the Iran war. The ONS said average petrol prices rose by 8.2p a litre in September and diesel by 10.7p.…