UK inflation up 3.1 percent in August as fuel prices rise

Britain's annual inflation rate climbed 3.1 percent in August, driven mainly by higher fuel prices as the Middle East situation continued to disrupt oil supplies, official data showed on Wednesday.

The latest figures from the Office for National Statistics (ONS) showed the Consumer Prices Index (CPI) rose last month from the 2.9 percent seen in July, with transport costs up 4.6 percent year on year in August, accelerating sharply from the previous month's 3.6 percent increase as fuel became more expensive.

The ongoing tensions in the Middle East have kept oil markets on edge in recent months, which the ONS said has fed through to higher prices at the pump, lifting transport and shipping costs across the economy, and resulting in August's pickup in inflation.

The figures point to mounting price pressures ahead with the latest forecast from the Institute of Grocery Distribution (IGD), a food industry research charity, warning UK food price inflation could hit 6.6 percent next year, with the upward trend expected to persist until 2028.

The U.S. dollar increased in late trading on Friday.

The dollar index, which measures the greenback against six major peers, added 0.74 percent to 102.298 at 15:00 (2000 GMT).

In late New York trading, the euro fell to 1.1140 dollars from 1.1225 dollars in the previous session, and the British pound dropped to 1.3351 dollars from 1.3459 U.S. dollars in the previous session.

The U.S. dollar bought 158.49 Japanese yen, higher than 157.85 Japanese yen of the previous session. The U.S. dollar advanced to 0.8206 Swiss francs from 0.8165 Swiss francs, and it increased to 1.4132 Canadian dollars from 1.3998 Canadian dollars. The U.S. dollar was up to 9.8988 Swedish Kronor from 9.7948 Swedish Kronor.