Economy

UK Inflation Jumps to 3.1% as Fuel Prices Rise

Published

1 month ago

September 16, 2026

UK inflation jumps to 3.1% in August as fuel prices rise, up from 2.9%, after higher energy costs linked to the Middle East war

On Wednesday, 16 September 2026, the Office for National Statistics said Britain’s annual inflation rate rose to 3.1 per cent in the 12 months to August, up from 2.9 per cent in July and in line with analysts’ forecasts.

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The ONS figures showed higher fuel costs, linked to the war in the Middle East, helping to push the Consumer Prices Index higher.

The rise adds pressure on Prime Minister Andy Burnham and finance minister John Healey to ease the cost of living before the Labour government’s budget update next month. The budget is due on 28 October.

The Bank of England is forecast to keep its benchmark interest rate at 3.75 per cent on Thursday as the UK economy struggles for growth.

To tackle high consumer prices, the US Federal Reserve is expected on Wednesday to raise borrowing costs, after a similar move by the European Central Bank last week.

With central bank rates rising and government bond yields at multi-decade highs in recent weeks, John Healey has pledged tight fiscal discipline. He has not said whether the 28 October budget will include new tax rises.

Analysts expect inflation to climb further towards the end of the year as higher energy costs feed into bills, with little sign of a deal to end the Middle East war.

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Richard Carter, head of fixed interest research at Quilter Cheviot, said: “With the situation in the Middle East looking increasingly fraught, the expectation is that inflation will continue to climb higher until the end of the year at a minimum.” He added: “For the government, today’s figures are a kick in the teeth for an administration that wants to make easing the cost of living its central mission.”

Related Topics:Andy Burnham Bank of England featured fuel prices Office for National Statistics UK inflation

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

18 hours ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.