UK Inflation Hits 3.1%, Fueled by Escalating Middle East Conflict

UK inflation accelerated to 3.1% in August, matching analysts' expectations. The consumer price index rose by 3.1% over the 12 months to August, according to data from the UK Office for National Statistics.

The increase is attributed to higher fuel prices amid the ongoing war in the Middle East. The situation remains tense, with few signs of an agreement to end the conflict.

Richard Carter, head of bond research at Quilter Cheviot, expects inflation to continue rising until the end of the year due to higher energy costs affecting household bills.