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UK inflation climbed back above 3% in August, hitting 3.1% as fuel prices spiked amid the ongoing Iran war. The jump, up from 2.9% in July, heaps fresh pressure on households already squeezed by the cost of living. Prime Minister Andy Burnham warned that "difficult decisions" loom in the October budget, while economists are now bracing for as many as four interest rate hikes in the next year.
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