UK Inflation Hits Five-Month High Amid War-Driven Energy Price Spike

UK inflation rose to a five-month high in August, driven by higher fuel prices and airfares. The Consumer Prices Index increased to 3.1% in August from 2.9% in July, exceeding the Bank of England's 2% target.

The Office for National Statistics cited energy costs as a major contributor to the rise in inflation, following the war involving Iran that has pushed up oil and gas prices. The Strait of Hormuz, a key route for global energy shipments, remains largely closed to traffic.

Despite the increase in inflation, the Bank of England is expected to keep its main interest rate at 3.75% when its Monetary Policy Committee concludes its meeting on Thursday. Policymakers will assess whether higher prices are translating into increased wages, which could add to inflationary pressures.