UK consumer price inflation rose to 3.1% in August from 2.9% in July, the Office for National Statistics reported on September 16, 2026. Reuters and the Associated Press described the reading as a five-month high. The increase puts household costs in focus before the Bank of England’s September 17 interest-rate decision.
The ONS identified transport, particularly motor fuels, as the main upward driver. Annual fuel inflation reached 23%, up from 15.5% in July. AP linked pressure at the pumps to the aftermath of the Iran war, which has disrupted energy markets and complicated efforts to bring inflation back to the central bank’s 2% target.
Average petrol prices rose by 9.1 pence per litre during August to 161.3 pence, the highest level since November 2022, according to the ONS. Diesel increased by 14.2 pence to 181.8 pence per litre. Airfares also contributed: they rose 6.2% over the month, compared with 2.1% in August 2025.
Underlying measures were steadier. The ONS said core CPI, which excludes energy, food, alcohol and tobacco, remained at 2.6%. Services inflation also held at 3.4%. Reuters reported that stability in measures excluding surging energy costs offered some relief for the Bank of England despite the higher headline rate.
The broader CPIH measure, which includes owner occupiers’ housing costs, rose to 3.3% from 3.1%, the ONS said. Consumer prices measured by CPI increased 0.5% over the month, against 0.3% a year earlier. The annual and monthly figures cover different periods and show why the latest rise matters for household purchasing power.
AP reported that policymakers were widely expected to keep the main interest rate at 3.75% on September 17 while assessing whether higher prices feed into wages. That remained an expectation, with the decision still pending at publication. The next ONS consumer inflation release is scheduled for October 21.
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