UK Inflation Hits 5-Month High as Petrol Prices Soar

The UK's inflation rate rose to its highest level in five months, reaching 3.1% in August, driven by soaring petrol and diesel prices.

Average petrol prices jumped by 9.1 pence to 161.3p per liter, while diesel prices surged by 14.2p to 181.8p per liter.

The increase was largely fueled by supply disruptions tied to the conflict in the Middle East, with oil hitting over $91 a barrel as the US-Israel war with Iran continued.

Despite the headline overshoot, markets expect the Bank of England to keep interest rates steady at 3.75%, as policymakers weigh cooling domestic job metrics against external energy shocks.