Rising prices for petrol, diesel and airfares have pushed UK inflation to its highest level in the six months to August.
Inflation accelerated to 3.1% from 2.9%, according to the Office for National Statistics (ONS).
The cost of filling up a car rose sharply in August as conflict in the Middle East continued to disrupt global oil supplies. Petrol prices have jumped to their highest level in almost four years, while diesel prices have also soared, according to the ONS.
Meanwhile, airfare has soared during a key month for summer holidays.
In general, motor fuel prices increased by 23% compared to August last year.
Oil rose above $91 a barrel as the US and Israeli war with Iran continued. By comparison, shortly before the outbreak of hostilities earlier this year, the figure was approximately $73.
As a result, average petrol prices continued to rise, rising by 9.1p to 161.3p per liter between July and August.
“This is the highest price recorded since November 2022,” the ONS said. At that moment, Russia’s full-scale invasion of Ukraine led to an increase in world energy prices.
Capital Economics said that for now the effect of higher oil prices had not spread to other areas such as food and drink, where inflation remained at 1.3% in the year to August.
But the UK’s chief economist Paul Dales said: “Everyone knows more inflation is coming.”
He estimates the combination of higher oil and gas prices and “a possible first-round effect of businesses passing on some of their higher energy costs” will lead to inflation peaking at 4.2% in January.
