UK inflation rises to 3.1% as motor fuel prices jump by almost a quarter

UK inflation has climbed back above 3% for the first time since early 2023, driven by surging fuel and transport costs linked to the conflict in Iran. The latest consumer prices index data shows a rise from 2.9% in July to 3.1% in August, with motor fuel prices jumping by nearly a quarter. Economists now see a one-in-five likelihood of the Bank of England raising interest rates by a quarter-point when it meets on Thursday. The latest inflation spike adds to financial strain on households already grappling with higher living costs.

Financial markets predict one-in-five chance of quarter-point rise in interest rates when Bank of England decides on ThursdayBusiness live – latest updatesUK inflation has returned above 3% as soaring fuel and transport prices triggered by the Iran war heap renewed pressure on British households.Figures from the Office for National Statistics show inflation as measured by the consumer prices index rose from 2.9% in July to 3.1% in August. The increase, which matched City forecasts, was driven by motor fuel prices rising by almost a quarter. Continue reading...