UK Inflation Hits 3.1% as Fuel Prices Soar

UK inflation has risen to 3.1%, driven by soaring fuel and transport prices triggered by the Iran war, adding pressure on households.

The Office for National Statistics reported that the consumer prices index rose from 2.9% in July to 3.1% in August, with motor fuel prices increasing by almost a quarter over the past year.

Average petrol prices reached 161.3p per liter in August, the highest level since November 2022, while diesel prices rose to 181.8p per liter.

The Bank of England is set to make a crucial decision on interest rates this week against the backdrop of rising inflationary pressures from oil and gas prices.