UK Inflation Surges to 3.1%, Transport Costs Drive Rise

The UK's annual inflation rate rose to 3.1% in August 2026, exceeding market expectations and marking its highest level in five months.

This increase comes on the back of rising transport costs, particularly motor fuels, which made the largest upward contribution to the annual rate, with transport inflation reaching 4.6% from 3.6% in July.

Petrol prices increased by 9.1 pence per litre to 161.3 pence, while diesel prices rose by 14.2 pence to 181.8 pence, leading to a 23.0% jump in motor fuel inflation from 15.5%.