UK Inflation Hits 3.1% as Fuel Prices Soar
UK inflation has risen to 3.1% in August, up from 2.9% in July, according to the Office for National Statistics (ONS). The increase is attributed to high fuel prices, particularly motor fuels, which made the largest upward contribution to the monthly change in both Consumer Price Index (CPI) and CPI including owner-occupiers' housing costs (CPIH).
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 between July and August 2025. The average petrol price stood at 161.3 pence per litre in August, the highest level since November 2022.
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, resulting in overall motor fuel prices rising by 23.0% in the 12 months to August 2026.