The United Kingdom’s inflation rate climbed to 3.1 percent in August 2026, up from 2.9 percent in July, as rising petrol and diesel prices put fresh pressure on consumers and the wider economy.
According to the UK Office for National Statistics (ONS), transport, particularly motor fuel prices, made the biggest contribution to the increase in inflation. The average price of petrol rose by 9.1 pence per litre between July and August, reaching 161.3 pence per litre — its highest level since November 2022.
Diesel prices also recorded a sharp increase, rising by 14.2 pence per litre in August to an average of 181.8 pence per litre. ONS said the increases pushed overall motor fuel prices up by 23 percent in the 12 months to August, compared with a 15.5 percent increase recorded the previous month.
The pressure was also reflected in other areas of transport. Air fares increased by 6.2 percent between July and August, although smaller downward movements in vehicle maintenance, repairs and rail fares partly offset the rise. Meanwhile, the Consumer Prices Index including owner-occupiers’ housing costs (CPIH) increased to 3.3 percent from 3.1 percent in July.
The latest figures highlight the growing impact of higher fuel costs on the UK economy, with transport remaining a major driver of price increases. Core CPI, which excludes energy, food, alcohol and tobacco, remained unchanged at 2.6 percent in the 12 months to August, while the CPI services annual rate held steady at 3.4 percent.
source: The cable
