Economics

Petrol and diesel price rises push UK inflation higher

Summer holidays and disruption to global oil supplies by the Middle East conflict stoked price growth.

Petrol and diesel price increases drive UK inflation higher

Higher petrol, diesel and airfares pushed UK inflation to 3.1% in the year to August.

Inflation rose from 2.9% in the 12 months to July, according to the Office for National Statistics (ONS).

The cost of filling up a vehicle climbed sharply in August as the conflict in the Middle East continued to disrupt global oil supplies. The ONS said petrol prices reached their highest level for nearly four years, while diesel also surged.

At the same time, the cost of flying increased during the key month for summer getaways.

Overall, motor fuel prices were 23% higher than in August last year.

Inflation has moved further away from the Bank of England's 2% target.

The bank uses interest rates to control inflation.

The rate currently stands at 3.75% and the Bank of England is meeting on Thursday to decide whether to change it.

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