UK inflation jumps to 3.1% as energy costs soar
The reading comes just hours before the Bank of England updates its monetary policy.
TL;DR
- UK annual inflation rate rose to 3.1% in August.
- Surging gasoline and diesel prices were the main drivers of the inflation.
- Motor fuel costs increased by 23% year-on-year.
- Average gasoline prices are at their highest since November 2022.
- Crude oil prices remain above $100 per barrel.
- The UK is vulnerable to external energy shocks as a net energy importer.
- Household fuel costs (electricity, gas) jumped 6% year-on-year in August.
- The country is experiencing a cost-of-living crisis due to post-pandemic inflation and energy costs linked to the Ukraine conflict.