UK Inflation Hits Five-Month High on Fuel Price Surge
UK inflation accelerated to its highest level in five months in August, driven by sharp increases in petrol and diesel prices linked to ongoing disruptions in the Middle East. The Consumer Prices Index rose to 3.1% annually, up from 2.9% in July.
The transport sector made the largest upward contribution, with inflation in that category jumping to 4.6% from 3.6% the previous month. Motor fuel inflation surged to 23.0%, reflecting a 9.1 pence per litre increase in petrol prices between July and August, while diesel rose 14.2 pence.
Fuel Prices at Three-Year Highs
The pressure on motorists has intensified significantly since the start of September. Average UK forecourt prices reached 170.54p per litre for petrol and 192.86p for diesel. Diesel is now at its highest price since July 2022, while petrol hasn't reached these levels since August 2022.
The cost of filling a typical 55-litre family car has risen by nearly £5 since the beginning of September, reaching approximately £94 for petrol and £106 for diesel. RAC head of policy Simon Williams warned there is 'no end in sight' to high pump prices as oil continues to trade above $100 per barrel.