Fuel Costs Push UK Inflation Towards 3% Mark

UK inflation is expected to have accelerated further in August due to rising fuel costs and higher electronics prices.

The Office for National Statistics will release the latest Consumer Prices Index (CPI) inflation rate on Wednesday, which is forecast to reach 3.1%.

This would mark a significant increase from July's 2.9%, according to Pantheon Macroeconomics' consensus of analysts.

Economists point to higher petrol and diesel costs as the primary driver of inflation, with fuel prices rising by 7% in August compared to July.

Oxford Economics' Andrew Goodwin expects this increase to contribute around 0.2 percentage points to CPI inflation.