Petrol and diesel price rises push UK inflation higher
Rises in petrol, diesel and airfares pushed UK inflation up to its highest level in five months in the year to August.
Inflation in the UK has surged to its highest level in five months, driven by rising petrol, diesel, and airfare prices. According to the Office for National Statistics (ONS), inflation increased to 3.1% in the year to August, up from 2.9%. Petrol prices reached their highest in nearly four years, while diesel also saw a significant jump.
The conflict in the Middle East has continued to disrupt global oil supplies, causing oil prices to hit over $91 a barrel, compared to $73 before the US-Israel war with Iran began. As a result, average petrol prices have climbed, with a 9.1p increase to 161.3p per litre between July and August. The ONS estimates that higher oil and gas prices, along with businesses passing on some of their increased energy costs, could push inflation to 4.2% in January.
Small petrol retailers like Goran Raven of Essex petrol station RJ Raven have also been significantly impacted, reporting a 20% decrease in business compared to this time last year. The Bank of England's inflation target remains at 2%, and the central bank meets on Thursday to decide whether to adjust interest rates. Prime Minister Andy Burnham acknowledged inflation as a concern but attributed it to the Middle East situation.
Shadow Chancellor Andrew Griffith criticized the government's jobs tax, employment red tape, and energy policies, which he believes are being passed onto consumers at the point of purchase.
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