Britain’s annual inflation rate increased to 3.1 per cent in August, up from 2.9 per cent in July, according to official data from the Office for National Statistics (ONS).

The increase was driven mainly by rising petrol and diesel prices, as well as higher household energy costs, with global oil prices affected by the continuing conflict in the Middle East.

The latest figure marked the highest annual inflation rate since March and was in line with economists’ expectations.

Motor fuel prices recorded a significant increase during the month, while airfares also contributed to the rise, particularly on long-haul routes.

Despite the increase in headline inflation, underlying price pressures remained relatively stable. Core inflation, which excludes energy and food prices, held at 2.6 per cent, while services inflation remained at 3.4 per cent.

The figures came ahead of the Bank of England’s latest interest-rate decision, with inflation remaining above its 2 per cent target.

The rise has renewed attention on the impact of higher energy prices on British households and businesses, although the stability of core and services inflation provides some indication that broader domestic price pressures have not accelerated at the same pace.