UK Inflation Rate Hits 3.3% in August

The UK's inflation rate rose to 3.3% in the 12 months to August 2026, up from 3.1% the previous month, according to the Office for National Statistics (ONS). The Consumer Prices Index including owner occupiers' housing costs (CPIH) also saw a monthly increase of 0.5% in August 2026 compared to a rise of 0.3% in August 2025.

Transport costs, particularly motor fuels, made the largest upward contribution to both CPIH and CPI annual rates. The UK's inflation rate has been steadily increasing since last year, with producer input prices rising by 6.1% in the year to August 2026, up from a revised rise of 5.8% in the year to July.

The upcoming Bank of England (BoE) monetary policy decision is expected to be influenced by this inflation report, which may trigger volatility in the British Pound (GBP).