Inflation rises AGAIN as CPI rate hits 3.1% in cost of living blow

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Analysts are pricing in multiple interest rate hikes this year due to growing inflationary pressure

The UK's consumer price index (CPI) inflation rate for 12 months to August jumped to 3.1 per cent per cent, according to the latest data from the Office for National Statistics (ONS).

This is a slight jump from July's 2.9 per cent rate and is attributed to a rise in transport costs, particularly motor fuels, towards the end of summer.

Today's figure comes as a blow to Prime Minister Andy Burnham and Chancellor John Healey ahead of the latter's Budget statement next month on October 28.

It also comes the day before the Bank of England's next base rate update, with many analysts pricing in four hikes to the cost of borrowing over the next 12 months.

The central bank's Monetary Policy Committee (MPC) are widely expected to hike interest rates to four per cent tomorrow.