UK Inflation Rises on Fuel Costs and Electronics
UK inflation is expected to have accelerated further in August due to higher fuel costs linked to the conflict in the Middle East and increased prices for electronics, according to a consensus of analysts.
The Office for National Statistics will release the latest Consumer Prices Index (CPI) inflation data on Wednesday, with forecasters predicting an uptick from 2.9% in July to 3.1% in August.
Economists point to rising petrol and diesel costs as a key driver of inflation, citing weekly data from the Department for Energy Security and Net Zero showing fuel prices increased by 7% between July and August.
Andrew Goodwin, chief economist at Oxford Economics, said: 'Weekly data from the Department for Energy Security and Net Zero suggests that fuel prices rose 7% month-on-month between July and August, and we expect this to add around 0.2 percentage points to CPI inflation.'