UK Inflation Hits 3.1% as Oil Prices Surge in August

UK inflation rose to 3.1% in August, up from 2.9%, driven by increased petrol and diesel prices alongside higher airfares. The average petrol price reached 161.3p per litre, a rise of 9.1p from July, marking the highest level since November 2022. The cost of motor fuel also increased by 23% compared to August last year. The ongoing conflict in the Middle East has pushed oil prices above $91 a barrel, creating potential upward pressure on inflation as businesses may pass their higher energy costs to consumers.