UK Inflation Hits Five-Month High at 3.1%

UK inflation has accelerated to a five-month high of 3.1% in August, according to official figures released on Wednesday.

The increase in the annual headline rate was in line with forecasts by economists polled by Reuters, who predicted it would be impacted by the resumption of conflict in the Gulf.

Grant Fitzner, chief economist at the Office for National Statistics, said sharp price rises for petrol and diesel pushed inflation up again in August. Higher airfares, particularly for long-haul journeys, also contributed to the increase.

The ONS reported that rising crude oil and petrol prices increased both the annual cost of raw materials and the price of goods leaving factories respectively.