UK Inflation Set to Rise Amid Fuel Price Hikes

UK inflation is expected to have accelerated in August due to higher fuel costs and more expensive electronics.

The Office for National Statistics will release the latest Consumer Prices Index (CPI) inflation data on Wednesday, with a consensus of analysts predicting a rise to 3.1% from 2.9% in July.

Oil prices have increased since the US-Iran ceasefire deal collapsed on July 8, and economists believe this will contribute to higher fuel costs for motorists, adding around 0.2 percentage points to CPI inflation.

Oxford Economics' Andrew Goodwin expects a significant uplift linked to petrol and diesel price increases, which rose 7% month-on-month between July and August.