UK inflation rate rises to 3.1% in year to August

The UK inflation rate rose to 3.1 per cent in the year to August, pushed up by “soaring” petrol and diesel prices.

The latest figures were released on Wednesday morning by the Office for National Statistics (ONS).

Inflation hit 2.9 per cent in July, which was its highest level in four months, after the price of energy was pushed up by the conflict in the Middle East.

Inflation measures the increase in the price of goods over time. The Bank of England has set a target of keeping the rate at 2 per cent.

The ONS said that the cost of transport, “particularly motor fuels”, made the largest upward contribution to the higher inflation rate.

“Sharp price rises for petrol and diesel pushed inflation up again in August,” ONS chief economist Grant Fitzner said.

“Higher airfares, particularly for long-haul journeys, also contributed to the increase.”

Prices in the transport division rose by 4.6 per cent in the 12 months to August, the ONS said.

“The average price of petrol rose by 9.1 pence per litre between July and August 2026, compared with a rise of 0.3 pence per litre between July and August 2025.”

On Tuesday, the RAC said that the cost of filling a family car with fuel had risen by almost £5 since the start of September.

Average UK forecourt prices reached 170.54p a litre for petrol on Tuesday, while diesel climbed to 192.86p, the motoring services company said.

Diesel is now at its highest price since 29 July 2022, with petrol reaching levels not seen since 23 August 2022.

The Bank of England will meet on Thursday to decide whether to change its interest rate, which it uses to control inflation. The rate currently sits at 3.75 per cent.

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