The United Kingdom's inflation rate accelerated to 3.1% in the year to August, driven by rising petrol and diesel costs alongside increased airfares, according to figures released by the Office for National Statistics.
The rate climbed from 2.9% recorded in the 12 months to July, marking a further departure from the Bank of England's 2% inflation target.
What pushed inflation higher?
Fuel prices rose sharply as ongoing conflict in the Middle East continued to disrupt global oil supply chains. The cost of air travel also increased during August, a peak month for summer holiday bookings, contributing to the overall acceleration in consumer prices.
How does the Bank of England respond?
The Bank of England uses interest rates as its primary tool to manage inflation. The current base rate stands at 3.75%, and the central bank is scheduled to meet on Thursday to determine whether adjustments to monetary policy are warranted in response to the latest inflation data.
The widening gap between current inflation and the bank's target suggests continued pressure on household finances and ongoing challenges in bringing price growth back to desired levels.
