UK Inflation Rate Surges to 3.1% in August Amid Petrol Price Spike

The UK's inflation rate has risen to 3.1% in the year to August, driven by surging petrol and diesel prices.

According to data released by the Office for National Statistics (ONS), inflation hit 2.9% in July, its highest level in four months, due to increased energy costs linked to the Middle East conflict.

Economists had predicted that the rate would climb further in August, citing higher fuel costs and more expensive electronics as key factors.

The ONS reported that the cost of transport made the largest upward contribution to the inflation rate, with prices rising by 4.6% in the 12 months to August.

The average price of petrol increased by 9.1 pence per litre between July and August 2022, while diesel climbed to its highest level since July 2022.