Fuel Prices Drive UK Inflation to Five-Month High

Inflation in the UK has reached a five-month high of 3.1% as fuel prices and airfares continue to rise, putting pressure on households and prompting calls for further government action.

The Consumer Prices Index inflation rate increased from 2.9% in July, according to official figures released by the Office for National Statistics (ONS). This is a significant increase from the 15-month low of 2.6% recorded in June.

Fuel prices were a major contributor to the rise in inflation, with petrol prices increasing by 9.1 pence per litre and diesel prices rising by 14.2 pence per litre between July and August.

Economists predict that inflation will continue to rise over the coming months, with some predicting it could peak at almost 4% in early 2027 before gradually dropping back down to 2% in 2028.