Fuel Prices Push UK Inflation Above 3%

UK inflation rose to 3.1% in August, driven by surging fuel prices, according to official figures from the Office for National Statistics (ONS).

The increase was led by a 9.1 pence per litre rise in petrol prices to an average of 161.3 pence per litre and a 14.2 pence per litre increase in diesel prices to an average of 181.8 pence per litre.

Chancellor John Healey attributed the inflation rise to the ongoing conflict between the US and Iran, which has put pressure on oil and gas markets.

Economists predict that inflation will continue to rise, peaking above 3% by the end of the year, with some forecasting it could reach as high as 4% in early 2027.