UK Inflation Rises to 3.1% as Transport Costs Soar

UK inflation rose to 3.1% in August 2026, up from 2.9% in July, according to official data from the Office for National Statistics (ONS). This increase marks a second consecutive month of rising inflation.

The largest upward contribution came from transport prices, which increased by 4.6% over the past year and by 1.5% on a monthly basis. Motor fuel prices saw significant jumps, with petrol prices rising by 9.1 pence per litre between July and August 2026 to reach 161.3 pence per litre, their highest level since November 2022.

Air fares also rose, with long-haul routes experiencing price increases. However, small downward effects came from vehicle maintenance and repair costs, as well as rail fares driven by international travel.

Experts warn that increased energy costs will continue to push up inflation in the coming months. Martin Sartorius, lead economist at the CBI, noted that 'higher fuel prices caused inflation to accelerate further in August'.