Home · World · Sep 16 archive
UK Inflation Hits 3.1% as Petrol and Diesel Prices Surge
Confirmed
In Short: Inflation in the UK has risen to 3.1%, driven by significant increases in petrol and diesel prices, according to the Office for National Statistics.
Inflation in the UK has risen to 3.1% from 2.9%, according to the Office for National Statistics (ONS), with petrol prices reaching their highest level in nearly four years and diesel also experiencing a sharp increase.
Petrol prices have risen by 23% compared to August last year, with average prices climbing 9.1p to 161.3p per litre between July and August, according to the ONS.
Capital Economics noted that while higher oil prices have not yet affected other areas like food and drink, the VAT cut will only partially offset the impact of rising gas prices, which have been driven by the Iran war and global supply disruptions.
What's confirmed
- Inflation accelerated to 3.1% from 2.9%, according to the Office for National Statistics (ONS).
What's still developing
- Commenting on inflation, shadow chancellor Andrew Griffith said the government's "jobs tax and employment red tape are being passed on to consumers in the weekly shop and their mad energy policies are pushing up costs and leaving Brits exposed".
- "If gas prices remain around current levels, household energy bills could rise by a further double-digit amount from January, with an even larger increase possible if wholesale prices climb further," she said.
- Petrol and diesel price rises push UK inflation higher 'Shoplifting has become totally normalised': The crime blighting communities across England Volunteers join police search for Noah Woods, 3, after he went missing from playground Do you feel guilty when calling in sick at work?
- China, which strategically slashed its crude oil imports by about 4-5 million barrels per day (bpd) in May and June, has started to gradually ramp up purchases, removing a significant demand-side balancing mechanism that had prevented oil prices from spiking to record highs in the spring.
- While Saudi Arabia’s customers in Asia are scrambling for updates, the oil market is pricing in another disruption to the Middle East’s oil flows at a time when the buffers are all but gone, and the fuel markets and prices are flashing severe tightness across continents.
- Chevron CEO Mike Wirth said on Friday that the market buffers have now been “played out” and oil prices could rise further over the coming months.
- “It's harder to envision a scenario where prices soften and quickly,” Wirth said, as carried by Reuters.