Inflation increases to 3.1 after jump in petrol prices

UK inflation climbed again in August, reaching 3.1% year-on-year on the Consumer Prices Index (CPI), up from 2.9% in July and following a 2.6% reading in June. The Office for National Statistics (ONS) said petrol and diesel were key drivers, with the average petrol price rising 9.1 pence per litre to 161.3 pence and diesel up 14.2 pence to 181.8 pence. Higher airfares, especially for long-haul travel, also lifted costs. ONS chief economist Grant Fitzner linked the fuel jump to early impacts of the July breakdown of the US-Iran ceasefire, which pushed oil and gas prices higher.