UK Inflation Hits Five-Month High Amid Iran War Fallout

The UK's inflation rate rose to a five-month high in August, reaching 3.1% according to official figures from the Office for National Statistics.

This increase is largely attributed to rising fuel prices and airfares following the Iran war, which began in late February.

The Bank of England is under pressure to raise interest rates again this year, as inflation continues to move away from its 2% target.

However, rate-setters may choose to keep the main interest rate at 3.75% for now, as a cooling jobs market provides some comfort against higher prices feeding into higher wages.