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UK’s inflation rises from 2.9% to 3.1%

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    The United Kingdom’s (UK) Consumer Price Index (CPI) on Wednesday, September 16, rose from 2.9 percent in July, to 3.1 percent in August 2026.

    The UK Office for National Statistics (ONS) attributed the increase to transport, particularly the rise in motor fuel prices.

    On a year-on-year basis, the ONS said the CPI rose by 0.5 percent in August 2026, compared with the 0.3 percent recorded in August 2025.

    “Transport, particularly motor fuels, made the largest upward contribution to the monthly change in both CPIH and CPI annual rates,” the office said.

    The statistics office said the average price of petrol rose by 9.1 pence per litre between July and August 2026, compared with an increase of 0.3 pence per litre over the same period in 2025.

    The average petrol price stood at 161.3 pence per litre in August, the highest level recorded since November 2022.

    The office added that diesel prices increased by 14.2 pence per litre in August 2026, compared with a rise of 0.8 pence per litre in August 2025.

    “The average price stood at 181.8 pence per litre in August 2026,” the agency said.

    “These movements resulted in overall motor fuel prices rising by 23.0% in the 12 months to August 2026, compared with a rise of 15.5% the previous month.”

    Within transport, the ONS said there was a much smaller upward contribution from air fares, while vehicle maintenance and repair and rail fares had small downward effects.

    The office said air fares rose by 6.2 percent between July and August 2026, compared with a 2.1 percent increase over the same period in 2025.

    The ONS also said the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.3 percent in the 12 months to August 2026, up from 3.1 percent in July.

    According to the statistics office, CPIH rose by 0.5 percent in August 2026, compared with a rise of 0.3 percent in August 2025.

    “Core CPIH (CPIH excluding energy, food, alcohol, and tobacco) rose by 2.9% in the 12 months to August 2026, unchanged from the 12 months to July; the CPIH goods annual rate rose from 2.2% to 2.7%, while the CPIH services annual rate was unchanged, at 3.6%,” the ONS said.

    “Core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 2.6% in the 12 months to August 2026, unchanged from the 12 months to July.”

    The statistics office added that the CPI goods annual rate rose from 2.2 percent to 2.7 percent, while the CPI services annual rate remained unchanged at 3.4 percent.

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