UK Inflation Hits Five-Month High on Petrol Price Spike

UK inflation accelerated to 3.1% in August, its highest level in five months, due to rises in petrol and diesel prices.

The Office for National Statistics (ONS) reported that motor fuel prices rose by 23% compared to August last year, with average petrol prices reaching their highest point since November 2022 at 161.3p per litre.

Oil prices hit over $91 a barrel as the US-Israel war with Iran continued, leading to higher crude oil and petrol prices that affected both raw materials and goods leaving factories.

According to Capital Economics, the effect of higher oil prices has not yet spilled over into other areas like food and drink, where inflation remained at 1.3% in the year to August.