Petrol Prices Fuel UK Inflation Surge to 6-Month High

UK inflation has reached its highest level in six months, accelerating to 3.1% from 2.9% in August.

The rise is largely due to increased petrol and diesel prices, which have soared by 23% compared to last year's August figures.

Average petrol prices rose by 9.1p to 161.3p per litre between July and August, the highest price since November 2022.

Capital Economics estimates that inflation will peak at 4.2% in January due to higher oil and gas prices and businesses passing on their costs.