UK Inflation Hits 3.1%, Driven by Soaring Fuel and Energy Prices

UK inflation rose to 3.1% in August, driven primarily by soaring motor fuel and energy prices.

The average price of petrol increased by 9.1 pence per litre between July and August, reaching its highest level since November 2022 at 161.3 pence per litre. Diesel prices rose even more sharply, increasing by 14.2 pence per litre to an average of 181.8 pence per litre.

The combined motor fuel price increase over the past year is a staggering 23%, with annual inflation remaining above target.

Savers are being urged to shop around for top rates, as nearly a quarter of savings accounts fall short of inflation. According to Eastell, savers who neglect to compare rates could miss out on almost £1,900 in interest over the course of five years.