UK Inflation Hits 3.1% Amid Energy Price Surge

The UK's inflation rate accelerated to 3.1% in August, up from 2.9% in July, according to official figures released on Wednesday.

The increase was largely driven by a renewed climb in energy prices following the resumption of conflict in the Gulf, which disrupted supply and pushed up household fuel and utility bills.

Economists polled by Reuters had mostly expected inflation to speed up to 3.1%, but even this forecast fell short of the actual rate.

The Bank of England is set to announce its decision on interest rates on Thursday, with many expecting it to keep the current rate of 3.75% unchanged despite mounting inflation pressure.