UK Inflation Jumps to Five-Month High Amid Energy Price Pressures
UK inflation accelerated to 3.1% in August, its highest level in five months, according to official figures released on Wednesday. The increase was in line with forecasts by economists polled by Reuters, who predicted it would be impacted by the resumption of conflict in the Gulf.
The rise in energy prices had a significant impact on inflation, with sharp price increases for petrol and diesel contributing to the increase. Higher airfares, particularly for long-haul journeys, also played a role.
Grant Fitzner, chief economist at the Office for National Statistics, noted that rising crude oil and petrol prices increased both the annual cost of raw materials and the price of goods leaving factories respectively.
The inflation pickup is likely to add to the headaches of Prime Minister Andy Burnham and finance minister John Healey, who have offered voters some support with the cost of living but whose options are limited by the weak state of the public finances.