UK CPI rose 3.1% year-on-year in August, reaching a new high since March

The UK CPI rose by 3.1% year-on-year in August, higher than the 2.9% in July and the Bank of England's expectation of 2.8%, setting a new high since March. The rise this time is mainly affected by the Middle East situation related to Iran, with global oil prices remaining above $100 per barrel and UK fuel prices at their highest level since 2022. Bank of England Governor Bailey has warned that ongoing conflicts, droughts in the UK, and El Ni ñ o could increase food price risks. (Source: ONS)