UK Inflation Hits 3.1% as Fuel Prices Soar

The UK's Consumer Prices Index (CPI) inflation rate rose to 3.1 per cent in August, up from 2.9 per cent in July.

The increase was driven by sharp price rises for petrol and diesel, which pushed inflation up again in August, according to the Office for National Statistics (ONS).

Petrol prices have been rising quickly in recent weeks, with the average price of petrol increasing by 9.1 pence per litre between July and August.

The ONS chief economist Grant Fitzner said: 'Sharp price rises for petrol and diesel pushed inflation up again in August.'

Economists are predicting that inflation will continue to rise over the coming months, with some forecasting a peak of almost 4 per cent in early 2027.