UK Inflation Hits 3.1% as Fuel Costs Continue to Soar

Inflation in the UK has risen to 3.1% in the year to August, up from 2.9% in July, according to the Office for National Statistics.

This marks a continued upward trend since June's 15-month low of 2.6%. The increased cost of living is attributed to higher fuel costs linked to the conflict in the Middle East and more expensive electronics.

Economists had predicted that the breakdown of the US-Iran ceasefire would have an early impact on inflation, with oil and gas prices rising since July 8.

Andrew Goodwin from Oxford Economics expects a significant uplift in fuel costs for motorists, adding around 0.2 percentage points to CPI inflation.