UK Inflation Surges to 5-Month High Amid Global Price Pressures
British inflation accelerated to a five-month high of 3.1% in August, according to official figures released on Wednesday. The increase was in line with forecasts by economists polled by Reuters.
The upward momentum is likely to continue as domestic energy bills, which track global market prices with a lag, are set to rise further.
Grant Fitzner, chief economist at the Office for National Statistics, attributed the price hikes to 'sharp rises' in petrol and diesel costs, as well as higher airfares for long-haul journeys.
The inflation surge adds to the challenges faced by Prime Minister Andy Burnham and finance minister John Healey, who have offered support to voters struggling with the cost of living but whose options are limited by the weak state of public finances.