Arabic version: التضخم في المملكة المتحدة يصل إلى 3.1% مع ارتفاع تكاليف الوقود
According to Cnbc, U.K. annual inflation rose to 3.1% in August, its first reading above 3% since March. The result matched economists’ expectations and followed a 2.9% rate in July. The Office for National Statistics said the increase was largely driven by motor fuel costs, which climbed 23% year on year.
Average gasoline prices rose by 9.1 pence per liter between July and August, reaching their highest level since November 2022, the ONS said. Average diesel prices increased by 14.2 pence per liter in August. Electricity, gas and other household fuel costs rose 6% year on year during the month.
Crude oil prices have remained above $100 per barrel, while the U.K., a net energy importer, is particularly exposed to external energy shocks. The July inflation increase followed a sharp upward revision to a government-regulated cap on energy costs. The country continues to face a cost-of-living crisis linked to post-pandemic inflation and higher energy costs following Russia’s full-scale invasion of Ukraine in 2022.
The data was released before the Bank of England’s Monetary Policy Committee policy update on Thursday. Markets were pricing in more than an 80% chance that the central bank would keep its key interest rate at 3.75%, according to LSEG data, while anticipating a hike at its November meeting. After the inflation reading, gilt yields fell across the curve, while the British pound was flat against the U.S. dollar and the euro.
ING economist James Smith said the figures did not point to an immediate need for higher rates, arguing there was little indication that the energy shock was spreading through the wider inflation basket. Food and non-alcoholic beverage inflation slipped to 1.1% year on year in August, he said. J.P. Morgan Personal Investing strategist Scott Gardner said the rise was unlikely to convince the Bank of England to raise rates immediately, though it could renew policymakers’ concerns about the inflation outlook.
