Oil prices help to push CPI inflation up to 3.1%: comment

Latest ONS inflation data show Consumer Price Index (CPI) rises driven in part by rise in petrol and diesel prices.

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By Dr Simon Cran-McGreehin

info@eciu.net

Last updated:

Responding to the latest ONS inflation data, showing that the Consumer Price Index (CPI) rose from 2.9% in July to 3.1% in August, driven in part by a 20.2% rise in petrol prices and a 27.8% rise in diesel prices, [1] Dr Simon Cran-McGreehin, Head of Analysis at the Energy and Climate Intelligence Unit (ECIU), said:

"Whilst these latest inflation figures confirm that drivers paid more at the pump last month because of Trump's war with Iran, the prices being paid in September are even higher [2] and are likely to rise further due to the conflict expanding and pushing oil prices above $100 a barrel for the past week. [3]
 
"With experts predicting that the growing gas crisis will push up household energy bills by a quarter in January, [4] not to mention the wider inflation caused by high fossil fuel prices, the Government faces an uphill struggle trying to help with the cost of living in the midst of back-to-back fossil fuel crises that have already cost the UK £180 billion over four years [5] and an extra £10 billion in the first six months of the war with Iran. [6]
 
"Whilst the Government cannot hope to out-spend these repeated fossil fuel crises, Ministers can get ahead of the next crisis by pushing ahead with the transition to UK renewables to power our homes and cars and yet the Government is actively considering cutting EV targets that give more drivers access to cheaper motoring and cut UK inflation."