Fuel Prices Push UK Inflation to 3.1% Amid BoE Policy Decision

UK inflation rose to 3.1% in August, up from 2.9% in July, driven by higher fuel prices.

The Office for National Statistics (ONS) reported that transport costs, particularly motor fuels, made the largest upward contribution to the change in consumer prices index (CPI).

Fuel prices rose 23% in the 12 months to August, compared with a 15.5% increase the previous month.

The Bank of England is set to announce its policy decision on Thursday, and economists expect it to hold rates steady at 3.75% despite rising inflationary pressures.