UK Inflation Hits Five-Month High Amid Fuel Price Surge

UK inflation rose to a five-month high of 3.1% in August, surpassing the Bank of England's target of 2%. The increase was driven by higher motor fuel and airfare prices.

The Office for National Statistics reported that transport costs were the primary factor behind the rise in headline inflation. Petrol and diesel prices surged, while long-haul airfares also contributed to the increase.

However, core CPI inflation remained steady at 2.6% in August, a fourth consecutive month with little change in underlying price pressures. Services inflation held at 3.4%, closely watched by the Bank of England as an indicator of domestic price pressures and wage-related inflation.