UK Inflation Hits 5-Month High as Fuel Costs Surge
UK inflation rose to its highest level in five months in August, reaching 3.1% as fuel costs increased ahead of the Bank of England's interest rate decision on September 17.
The Office for National Statistics said transport made the largest upward contribution to the annual inflation rate, with motor fuel prices rising sharply by 9.1 pence per litre between July and August, and diesel prices increasing by 14.2 pence per litre over the same period.
Grant Fitzner, chief economist at the ONS, noted that 'sharp price rises for petrol and diesel pushed inflation up again in August.'
Despite the rise in headline inflation, measures watched closely by the Bank of England stayed stable, with core CPI remaining at 2.6% for a fourth straight month and services inflation holding at 3.4%.