UK Inflation Rises to 3.1% as Petrol and Diesel Climb

UK consumer price inflation rose to 3.1% in the 12 months to August 2026, up from 2.9% in July, according to the Office for National Statistics.

The Consumer Prices Index including owner occupiers' housing costs, known as CPIH, rose to 3.3% over the same period, up from 3.1% the previous month.

On a monthly basis, both CPI and CPIH rose by 0.5% in August 2026, compared with a 0.3% rise in August 2025.

Transport, particularly motor fuels, made the largest upward contribution to the change in the annual rates. Prices in the transport division rose by 4.6% in the 12 months to August 2026, up from 3.6% in July.

The average price of petrol rose by 9.1 pence per litre between July and August 2026, to 161.3 pence per litre, the highest level since November 2022. Diesel rose by 14.2 pence per litre over the month, to 181.8 pence per litre.

Overall motor fuel prices rose by 23.0% in the 12 months to August 2026, compared with a 15.5% rise the previous month. Air fares also contributed, rising by 6.2% between July and August 2026, with long-haul routes a notable factor in the monthly move.

Core CPI, which excludes energy, food, alcohol and tobacco, was unchanged at 2.6% in the year to August. Core CPIH was unchanged at 2.9%. Services inflation on the CPI measure was unchanged at 3.4%, while CPI goods inflation rose from 2.2% to 2.7%.

Food and non-alcoholic beverage inflation stayed at 1.3% in August 2026, matching July. The Office for National Statistics noted that this rate was last lower in September 2021.

Housing and household services inflation on the CPIH measure edged up to 4.3% from 4.1%, helped by a rise in owner occupiers' housing costs to 3.9% from 3.7%. Electricity, gas and other fuels rose by 6.0% in the year to August.

The Bank of England's inflation target is 2% on the CPI measure. Bank Rate currently stands at 3.75%, with the Monetary Policy Committee due to announce its next decision on 17 September 2026.

These figures are educational context on how UK household prices moved in August. They are not a forecast of bills, rates or personal finances, and they are not advice.