Soaring fuel prices push UK inflation to 3.1%

• The UK inflation rate rose to 3.1 per cent in the year to August, up from 2.9 per cent in July.
• The Office for National Statistics highlighted transport costs, particularly motor fuels and long-haul airfares, as the main drivers of the increase.
• Data from the RAC showed average forecourt prices reached 170.54p per litre for petrol and 192.86p for diesel, reaching multi-year highs.
• The Bank of England meets on Thursday to review its 3.75 per cent interest rate, with analysts suggesting an immediate rate increase is unlikely.
• Chancellor John Healey said that the conflict in the Middle East is impacting inflation around the world, “not just here at home”.

IN FULL

UK inflation rate rises to 3.1% in year to August