UK Inflation Data Puts Pressure on BOE Rate Hike Decision

UK inflation data for August was released today, showing a rise to 3.1% from 2.9% in July, as expected.

The real shock will come next month when oil prices are expected to surge above $100 and petrol and gas prices reach their highest levels in four years.

Transport costs were the main contributor to upward pressure on prices, while core inflation remained stable at 2.6% and service price inflation stayed at 3.4%.

The BOE's only job is to control inflation, and with headline CPI expected to peak above 4% later this year, they must act despite a weakening labour market.