UK Inflation Hits Five-Month High on Fuel and Airfare Price Hikes

Inflation in the UK has hit a five-month high at 3.1% in August, driven by rising fuel prices and airfares.

The Office for National Statistics (ONS) reported that Consumer Prices Index (CPI) inflation increased from 2.9% in July to 3.1% in August.

Chancellor John Healey attributed the rise to the war in the Middle East, which pushed oil prices higher and caused fuel prices to jump by 9.1 pence per litre to an average of 161.3 pence per litre.

Expensive air travel also contributed to inflation, with airfares increasing by 6.2% due to a rise in the cost of long-haul flights.

However, not all price rises accelerated in August, as food and drink inflation remained flat at 1.3%, and the price of meat and fruit dipped marginally compared to the previous month.