UK Inflation Hits Five-Month High as Petrol Prices Soar

UK inflation accelerated to a five-month high of 3.1% in August, surpassing forecasts by economists polled by Reuters.

The surge was driven by sharp price rises for petrol and diesel, as well as higher airfares, particularly for long-haul journeys, according to Grant Fitzner, chief economist at the Office for National Statistics.

However, measures excluding surging energy prices held stable, with core inflation remaining steady at 2.6% for the fourth consecutive month and services sector inflation unchanged at 3.4%.

The Bank of England is expected to keep interest rates on hold tomorrow, despite concerns about the risk of energy costs pushing up prices more broadly.