UK Inflation Set to Surge in August Amid Fuel and Electronics Price Hikes

UK inflation is expected to have accelerated further in August due to rising fuel costs and higher electronics prices. According to a consensus of analysts compiled by Pantheon Macroeconomics, inflation rose to 3.1% in August from 2.9% the previous month.

The Office for National Statistics will release the latest Consumer Prices Index (CPI) data on Wednesday, which is expected to show a continued upwards trajectory since reaching a 15-month low of 2.6% in June.

Economists point to higher oil and gas prices as a significant factor in the increase, with fuel prices rising 7% month-on-month between July and August. Andrew Goodwin from Oxford Economics expects this to add around 0.2 percentage points to CPI inflation.