UK consumer inflation rose for a second consecutive month in August as vehicle fuel jumped, adding pressure on the Bank of England ahead of its policy decision. The ONS said CPI rose 3.1% YoY in August, the highest since March and up from July’s 2.9%; the print matched economists’ median and exceeded the BoE’s prior 2.8% projection. The acceleration was driven by higher petrol and diesel prices linked to the ongoing Iran-related Middle East conflict; global oil is trading above $100/bbl and UK p

UK consumer inflation rose for a second consecutive month in August as vehicle fuel jumped, adding pressure on the Bank of England ahead of its policy decision. The ONS said CPI rose 3.1% YoY in August, the highest since March and up from July’s 2.9%; the print matched economists’ median and exceeded the BoE’s prior 2.8% projection. The acceleration was driven by higher petrol and diesel prices linked to the ongoing Iran-related Middle East conflict; global oil is trading above $100/bbl and UK pump prices are at their most expensive since 2022. Sterling held gains after the release. BoE officials meeting this week are expected to keep rates unchanged, citing a weak labour market that has so far contained spillovers; Governor Bailey warned that a prolonged conflict, UK drought and an imminent El Nifio could raise food-price risks.