UK Inflation Hits Five-Month High Amid Energy Price Surge

UK inflation accelerated to a five-month high of 3.1% in August from 2.9% in July, according to official figures released on Wednesday.

The increase was in line with the median forecast of economists polled by Reuters who predicted consumer price inflation would speed up due to a renewed climb in energy prices caused by the resumption of the conflict in the Gulf.

Despite the rise in price pressures, the Bank of England is expected to announce that it will keep interest rates on hold when it meets later this week.

The BoE's forecast in July had predicted annual inflation would stand at 2.8% in August.