Inflation blow for John Healey as prices rise by 3.1% in August
UK inflation rose to 3.1% in August, up from 2.9% a month earlier. Surging fuel prices helped drive up the figure which was in line with predictions and points to an upward trajectory for inflation since striking a 15-month-low of 2.6% in June.
TL;DR
- UK inflation rose to 3.1% in August, up from 2.9% in July.
- Surging fuel prices, particularly petrol and diesel, were the main drivers of the increase.
- Higher airfares also contributed to the inflation rise.
- Petrol prices reached their highest in almost four years.
- The increase in oil and gas prices is linked to the collapse of the US-Iran ceasefire deal.
- Tackling the cost of living is a priority for Prime Minister Andy Burnham and Chancellor John Healey.
- Rising inflation has increased expectations of an interest rate hike by the Bank of England.