- UK CPI inflation increased to a five-month high of 3.1 per cent in August, rising from 2.9 per cent in July according to the Office for National Statistics.
- The inflation rise was primarily driven by higher fuel prices, with petrol climbing 9.1p per litre, alongside a 6.2 per cent increase in airfares.
- Food and drink inflation remained flat at 1.3 per cent, while alcohol prices fell by 0.9 per cent compared to the same month last year.
- Economists warn inflation could continue to rise in the coming months due to Middle East conflict keeping energy costs elevated, potentially reaching 4.5 per cent in January.
- The Bank of England is expected to hold interest rates at 3.75 per cent at its latest meeting, although experts predict a rate increase may follow in November.
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