UK inflation rose to 3.1% in August as households faced higher fuel prices, air fares and energy bills.
The Consumer Prices Index increased from 2.9% in July, according to the Office for National Statistics, in line with economists’ expectations.
Fuel prices were among the biggest drivers, rising 23% compared with a year earlier. Petrol increased by 9.1p a litre during August to an average 161.3p, while diesel jumped 14.2p to 181.8p.
Air fares rose 6.2% between July and August, while households were also hit by a 13% increase in the Ofgem energy price cap following higher oil and gas prices caused by the Iran war.
The figures maintain pressure on the Bank of England ahead of its latest interest rate decision on Thursday and come as Chancellor John Healey prepares next month’s Budget, with the Government under pressure to ease the cost of living.