Fuel Costs Push UK Inflation to Five-Month High Ahead of BoE Rate Decision

UK inflation rose to 3.1% in August, its highest level in five months, as fuel costs increased.

The Office for National Statistics reported that transport made the largest upward contribution to the annual inflation rate, with motor fuel prices rising sharply.

Petrol prices increased by 9.1 pence per litre between July and August, while diesel prices rose by 14.2 pence per litre over the same period.

Grant Fitzner, chief economist at the ONS, stated that 'sharp price rises for petrol and diesel pushed inflation up again in August.'

The Bank of England will announce its interest-rate decision on September 17, with financial markets pricing in a 20% chance of a quarter-point increase.