Key facts
- UK inflation rose to 3.1% in August from 2.9% in July.
- UK wages, excluding bonuses, grew 3.5% in the three months to July.
- Total UK earnings, including bonuses, grew 3.9% in the same period.
- Bank of England Governor Andrew Bailey warned that the Iran conflict could push UK inflation above 4%.
British inflation accelerated to 3.1% in August from 2.9% in July, official figures showed. Economists had largely expected inflation to rise to this level due to renewed climbs in energy prices stemming from the conflict in the Gulf. The Bank of England had previously predicted inflation would stand at 2.8% in August.
Separately, UK wages, excluding bonuses, grew by 3.5% in the three months to July, matching economists' expectations. Total earnings, including bonuses, rose 3.9% in the same period. Real regular pay, adjusted for inflation, grew 0.8% using CPI, while real total pay grew 1.1%.
Bank of England Governor Andrew Bailey had previously warned that the conflict in Iran could push UK inflation above 4% and cause further energy price rises, noting that inflationary pressures persist in the UK economy. Brent crude prices had climbed toward $100 a barrel amid heightened tensions in the Strait of Hormuz.