UK Inflation Hits Five-Month High on Fuel Price Surge

Inflation in the UK has reached a five-month high, driven by rising fuel prices and airfares. According to the Office for National Statistics (ONS), Consumer Prices Index (CPI) inflation increased to 3.1% in August from 2.9% in July.

The hike is largely attributed to sharp price rises for petrol and diesel, with the average price of petrol increasing by 9.1 pence per litre between July and August. The price of diesel rose by 14.2 pence per litre during the same period.

Economists predict that inflation will continue to rise over the coming months, with some forecasting a peak of almost 4% in early 2027. The Bank of England's Monetary Policy Committee is expected to keep interest rates at 3.75%, but may increase them in future months if necessary.