UK Inflation Surges to Five-Month High as Bank of England Decision Looms

UK inflation rose to 3.1% in August, marking its highest reading in five months.

The Bank of England is set to decide on interest rates one day later, with most economists expecting it to leave the rate at 3.75%.

Average petrol prices climbed 9.1p between July and August to 161.3p a litre, while diesel rose 14.2p to 181.8p a litre.

Underlying inflation told a different story, with core inflation holding at 2.6% for the fourth consecutive month and services inflation staying at 3.4%.