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

> Consumer prices rose 3.1% in the year to August 2026, up from 2.9% in July, the ONS said on 16 September. Core inflation held at 2.6%, a day before the Bank of England's decision.

- Canonical URL: https://forextradingcommunity.com/news/uk-inflation-august-2026-3-1-percent/
- Type: Data
- Published: 2026-09-17
- Updated: 2026-09-17
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: GBP

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](/news/cpi-inflation-explained-headline-and-core/) 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](/news/us-cpi-august-2026-inflation-3-4-percent/)).

## 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](/news/bank-of-england-september-2026-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](/news/uk-labour-market-september-2026/)), and the economy grew 0.4% in July ([report](/news/uk-gdp-july-2026/)).

The US Federal Reserve raised its rates on 16 September ([report](/news/fed-raises-rates-september-2026/)). 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](/calendar/). The next UK inflation figures are due on 21 October. Live prices: [GBP/USD](/markets/gbp-usd/) and [EUR/GBP](/markets/eur-gbp/).

## Sources

- [Office for National Statistics: Consumer price inflation, UK: August 2026](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/august2026)

## Common questions

### What is the UK inflation rate?

CPI inflation was 3.1% in the 12 months to August 2026, up from 2.9% in July, according to the Office for National Statistics. CPIH, which includes owner occupiers' housing costs, was 3.3%.

### Is UK inflation higher than in the USA?

Not in August 2026. UK CPI inflation was 3.1%, while US consumer prices rose 3.4% over the same 12 months. The two indexes are calculated differently, so the comparison is approximate.

### When is the next UK inflation figure published?

The ONS publishes September 2026 consumer price inflation on 21 October 2026.

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