UK inflation rose to 3.1% in August, increasing pressure on household finances ahead of the Budget on 28 October. Andy Burnham described the figures as concerning and warned that the Budget would be 'challenging', while promising not to take unnecessary risks with living standards or the wider economy. Rising fuel prices were a major contributor, with petrol now averaging 161.3p per litre and diesel 181.8p. The US-Iran conflict has placed additional pressure on global oil and gas markets, while higher long-haul airfares also contributed to inflation. Chancellor John Healey said international instability was affecting household bills and transport costs, but highlighted government measures including reduced electricity taxes and capped bus fares. Economists warn inflation could continue rising, potentially approaching 4% during 2027, while higher energy costs may become more noticeable as households increase heating use during winter. The Bank of England is consequently expected to remain cautious about future interest-rate reductions. See