UK inflation rises to 3.1% in August as petrol and diesel prices jump

The Office for National Statistics published August's consumer price figures on Wednesday 16 September 2026, the day before the Bank of England announces its interest rate decision.

The headline figures

• CPI inflation: 3.1% in the 12 months to August, up from 2.9% in July. Prices rose 0.5% on the month.
• CPIH, which includes owner occupiers' housing costs: 3.3%, up from 3.1%
• Core CPI, excluding energy, food, alcohol and tobacco: 2.6%, unchanged
• Goods inflation: 2.7%, up from 2.2%
• Services inflation: 3.4%, unchanged

Fuel did most of the work

• Motor fuels were 23.0% more expensive than a year earlier, compared with 15.5% in July.
• Petrol rose by 9.1 pence a litre between July and August, compared with 0.3 pence in the same months of 2025. Diesel rose by 14.2 pence, compared with 0.8 pence.
• Air fares rose 6.2% between July and August, compared with 2.1% a year earlier.
• Housing and household services: 4.3%, up from 4.1%. Owner occupiers' housing costs rose 3.9%, and electricity, gas and other fuels 6.0%.
• Food and non-alcoholic beverages: 1.3%, unchanged. Clothing and footwear: 0.2%, down from 0.5%.

Core and services inflation didn't move, so the rise came from fuel and other energy-related prices rather than from broader price pressure. CPI inflation explained covers why central banks watch both measures.

How the UK compares

The ONS noted that 3.1% was higher than the first estimates of August inflation for France (2.7%) and Germany (2.9%). In the United States, consumer prices rose 3.4% in the year to August (report).

What it means for the Bank of England

In July, the Monetary Policy Committee held Bank Rate at 3.75% on a 6–3 vote, with three members voting for an increase (preview). Since then, inflation has risen from 2.9% to 3.1%. Unemployment was 4.9% in May to July and private sector regular pay grew 2.9% (labour market report), and the economy grew 0.4% in July (report).

The US Federal Reserve raised its rates on 16 September (report). The Bank of England announces its decision on Thursday 17 September at 12:00 UK time; times in your zone are on the economic calendar. The next UK inflation figures are due on 21 October. Live prices: GBP/USD and EUR/GBP.