UK Inflation Hits 3.1%, Fuel Price Increases Pinch Households

The UK's annual inflation rate accelerated to 3.1% in August, up from 2.9% the previous month, due to rising fuel prices caused by the ongoing conflict in the Middle East.

The Office for National Statistics (ONS) reported that consumer price index (CPI) rose 0.2 percentage points from July's rate, driven by higher energy costs.

This increase puts pressure on Prime Minister Andy Burnham and Treasury chief John Healey to ease the cost of living for households ahead of the Labour government's budget update next month.