U.K. Inflation Hits 3.1% as Pump Prices Continue to Soar

U.K. inflation rose to 3.1% in August, its highest level since March, as pump prices continued to surge.

The Office for National Statistics pointed to motor fuels as the main driver of inflation, with petrol and diesel prices up 23% and 14.2 pence per liter respectively compared to last year.

Crude oil prices remain above $100 a barrel, exacerbating energy cost pressures on households and businesses.

The Bank of England's decision to hold or raise interest rates next week will be closely watched, with traders giving over 80% odds that it maintains the current rate of 3.75%.