UK Inflation Hits Five-Month High as Fuel Prices Skyrocket

UK inflation has risen to its highest level in five months, reaching 3.1 per cent in August according to the Office for National Statistics.

The increase was driven by higher fuel prices, with petrol increasing by 9.1p per litre and airfares rising by 6.2 per cent.

Despite this, food and drink inflation remained flat at 1.3 per cent, while alcohol prices fell by 0.9 per cent compared to the same month last year.

Economists warn that inflation could continue to rise in the coming months due to ongoing Middle East conflict keeping energy costs elevated, potentially reaching 4.5 per cent in January.