UK Inflation Rises to 3.1% in August, Driven by Motor Fuel Costs

The UK's inflation rate has risen to 3.1% in August, according to the Office for National Statistics.

This marks a 0.2 percentage point increase from July and matches forecasts. On a monthly basis, prices rose 0.5% in August, also meeting expectations.

The largest upward contribution to the annual inflation rate came from motor fuel costs, which surged by 23% over the past year. Petrol prices increased by an average of 9.1 pence per litre between July and August, reaching a high of 161.3 pence per litre since November 2022.

Diesel prices also rose sharply, increasing by 14.2 pence per litre compared to the same period last year, with an average price of 181.8 pence per litre.