UK Inflation Hits 3.1% as Fuel Prices Soar

The UK's annual inflation rate rose to 3.1% in August, according to official data released Wednesday.

This increase is higher than the previous month's rate of 2.9%, and it's in line with analysts' expectations.

The main driver behind this rise was the Middle East war, which has driven up fuel prices.

With inflation on the rise, the Bank of England is expected to maintain its benchmark interest rate at 3.75% on Thursday, and the US Federal Reserve is likely to lift borrowing costs later in the day.

The UK government's finance minister, John Healey, has pledged to maintain strict fiscal discipline, but he hasn't ruled out new tax rises in his upcoming budget update.