UK Inflation Set to Surge on Fuel and Electronics Costs
UK inflation is expected to have accelerated further in August as higher fuel costs linked to the conflict in the Middle East and more expensive electronics pushed up the cost of living.
The consensus among analysts, compiled by Pantheon Macroeconomics, suggests that inflation rose to 3.1% in August, from 2.9% a month earlier.
Economists point out that the fresh figures are likely to show the early impact of the breakdown of the US-Iran ceasefire, which led to higher oil and gas prices since July 8.
Andrew Goodwin, chief economist at Oxford Economics, expects a significant uplift linked to higher petrol and diesel costs for motorists, adding around 0.2 percentage points to CPI inflation.
Airfares are also likely to have swung higher in August following weaker pricing in July, with higher jet fuel costs feeding into ticket prices.