UK Inflation Reaches 3.1% as Motor Fuel Costs Soar

UK inflation rose to 3.1% in August, matching forecasts, as motor fuel costs drove the largest upward contribution to the annual rate.

The Office for National Statistics reported that prices rose 0.5% in August on a monthly basis, also matching forecasts and up from 0.3% in July.

Motor fuel prices jumped 23% in the 12 months to August, with petrol rising 9.1 pence per litre and diesel increasing by 14.2 pence per litre between July and August.

The average price of petrol reached 161.3 pence per litre, the highest since November 2022, while diesel prices rose to 181.8 pence per litre.