UK inflation accelerated to 3.1 per cent in August 2026, driven largely by a sharp increase in motor fuel prices that pushed petrol and diesel costs to their highest levels in years.
The latest figures from the Office for National Statistics (ONS) showed that the Consumer Prices Index (CPI) rose from 2.9 per cent in July to 3.1 per cent in August. The increase was mainly linked to transport costs, particularly the price of petrol and diesel.
Brandspur Business News Desk reports that average petrol prices climbed by 9.1 pence per litre between July and August, compared with a rise of just 0.3 pence over the same period in 2025. The average price reached 161.3 pence per litre, its highest level since November 2022.
Diesel recorded an even sharper monthly increase, rising by 14.2 pence per litre in August, against a 0.8 pence increase during the corresponding period last year. Its average price stood at 181.8 pence per litre.
The increases lifted motor fuel prices by 23 per cent in the 12 months to August, up from the 15.5 per cent annual increase recorded in July.
Transport was not the only area affecting consumer prices. Air fares also rose, increasing by 6.2 per cent between July and August 2026, compared with a 2.1 per cent increase over the same period in 2025.
However, smaller downward movements in vehicle maintenance and repair costs and rail fares partly offset the impact of higher transport prices.
The broader Consumer Prices Index including owner occupiers’ housing costs (CPIH) also increased, reaching 3.3 per cent in the 12 months to August from 3.1 per cent in July.
ONS data showed that underlying price pressures remained mixed. Core CPIH, which excludes energy, food, alcohol and tobacco, held at 2.9 per cent year-on-year, unchanged from July.
Core CPI also remained unchanged at 2.6 per cent over the same period. Meanwhile, the annual CPI goods rate increased from 2.2 per cent to 2.7 per cent, while the services rate held steady at 3.4 per cent.
For households, the latest figures point to renewed pressure from the cost of getting around, with fuel accounting for much of the acceleration in headline inflation during the month. Businesses that rely heavily on road transport and consumers facing higher fuel costs are also directly exposed to the increase.
