UK inflation hits 3.1% but data offers some relief for BoE

Live updates

1. 1h ago

   UK Inflation Hits 3.1% Amid Rising Energy and Fuel Costs

   UK inflation rose to 3.1%, marking a five-month high. This increase stems from soaring energy costs and higher prices for petrol and diesel. While the jump pressures the Bank of England to raise interest rates this year, some data provides relief for the central bank. In other economic news, UK rents are accelerating, though average house prices in London have fallen £19,000 below their peak. Prime Minister Burnham has stated he will make tough decisions to maintain the economic trajectory.

   Why it matters

   The Bank of England faces an upcoming rate call to determine how to stabilize prices. Persistent inflation increases the likelihood of tighter monetary policy to curb spending.

   What is confirmed

   • UK inflation has risen to 3.1%.
   • Rising energy costs contributed to the jump in inflation.

   Still unconfirmed

   • Average London house prices fell £19,000 below their peak.
   • UK rents are accelerating.
   • Petrol and diesel price rises pushed inflation higher.
   • Inflation has reached a five-month high.
   • Prime Minister Burnham will take tough decisions to keep the economy on track.

   What to watch next

   • The Bank of England rate call decision
   • Further updates on London housing price trends
   Sources used for this update (7)

   1. CNBC — UK inflation jumps to 3.1% as energy costs soar
   2. The Guardian — UK rents accelerate, as average London house price falls £19,000 below peak – business live
   3. BBC — Petrol and diesel price rises push UK inflation higher
   4. WSJ — U.K. Inflation Rises Ahead of BOE Rate Call
   5. Reuters — UK inflation hits 3.1% but data offers some relief for BoE
   6. AP News — UK inflation rises to 5-month high, further pressuring Bank of England to raise rates this year
   7. Reuters — UK PM Burnham says he will take tough decisions to keep economy on track
   confidence 80%