UK Inflation Hits Five-Month High as Fuel Prices Bite

UK inflation accelerated to a five-month high of 3.1% in August, driven by higher fuel prices and airfares. The rise in the annual headline inflation rate was in line with economists' expectations.

The Office for National Statistics said steep increases in petrol and diesel prices drove inflation higher again in August, while rising airfares, especially on long-haul routes, also played a role.

Finance Minister John Healey said the impact of the conflict in the Middle East was being felt through higher household bills, grocery costs, and fuel prices.

The figures add to the challenges facing the government as it seeks to ease the cost of living burden while preparing for its October 28 budget.