UK inflation 3.1% in August as fuel and airfares rise
Business
UK inflation climbed to 3.1% in August, the highest in five months, mainly because fuel and airfare got pricier.
Rising oil costs are being blamed on the Iran war, which is disrupting a key shipping route.
Bank of England likely to hold
Even with inflation up, the Bank of England is expected to keep its main interest rate at 3.75% for now. It is watching wage and job data before making any moves.
Economist Suren Thiru says a softer job market is helping keep pay increases in check, but if prices keep climbing, rate hikes could be back on the table later this year.