UK Inflation Hits 3.1% as Petrol Prices Soar

The UK's inflation rate rose to 3.1% in the year to August, driven by 'soaring' petrol and diesel prices.

The Office for National Statistics (ONS) released figures on Wednesday morning showing a significant increase from 2.9% in July.

Grant Fitzner, ONS chief economist, said that sharp price rises for petrol and diesel pushed inflation up again in August.

The cost of transport made the largest upward contribution to the higher inflation rate, with prices rising by 4.6% over the past year.

Scott Gardner, an investment strategist at J.P. Morgan Personal Investing, cautioned that the increase in inflation was unlikely to convince the Bank of England to hike interest rates just yet.