UK Inflation Surges to 5-Month High as Energy Prices Soar

UK inflation accelerated to a five-month high of 3.1% in August, exceeding economists' expectations and the Bank of England's forecast.

The increase was attributed to a renewed climb in energy prices caused by the resumption of the conflict in the Gulf.

Despite the higher headline rate, policymakers are likely to focus on underlying measures of price growth, which were relatively stable.

The Office for National Statistics reported that core inflation, excluding volatile items such as food and fuel, remained at 2.6% for a fourth consecutive month in August.