Middle East War Drives UK Inflation to 3.1% as Bank of England Faces Interest Rate Reckoning

The Iran war is hitting your wallet directly. UK inflation jumped to 3.1% in August, its highest in six months, as motor fuel prices soared by 23% year-on-year. Average petrol hit 161.3p per litre, the highest since November 2022, while diesel reached 181.8p. The Bank of England meets Thursday under intense pressure to raise interest rates from 3.75% to prevent inflation spiralling to a forecast peak of 4.5% by mid-2027. Chancellor John Healey...