HomeFuel Price Surge Pushes UK Inflation to 3.1%

Fuel Price Surge Pushes UK Inflation to 3.1%

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Fuel Price Surge Pushes UK Inflation to 3.1%

The United Kingdom’s consumer price index (CPI) rose to 3.1 percent in August from 2.9 percent in July.

The UK Office for National Statistics (ONS) attributed the increase to transport, particularly motor fuel prices.

On a year-on-year basis, ONS said the CPI rose by 0.5 percent in August this year — compared to the 0.3 percent recorded in August 2024.

“Transport, particularly motor fuels, made the largest upward contribution to the monthly change in both CPIH and CPI annual rates,” the office said.

The statistics office said 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.

ONS said the average petrol price stood at 161.3 pence per litre in August — the highest level recorded since November 2022.

The office added that 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,” the agency said.

“These movements resulted in overall motor fuel prices rising by 23.0% in the 12 months to August 2026, compared with a rise of 15.5% the previous month.”

Within transport, ONS said there was a much smaller upward effect from air fares, and partially offsetting small downward effects from vehicle maintenance and repair, and rail fares.

The office said air fares rose by 6.2 percent between July and August 2026, compared with a 2.1 percent increase over the same period in 2025.

The agency also said the consumer prices index, including owner occupiers’ housing costs (CPIH), rose by 3.3 percent in the 12 months to August — up from the 3.1 percent in July.

According to the office, CPIH rose by 0.5 percent in August 2026 — compared with a rise of 0.3 percent in August 2025.

“Core CPIH (CPIH excluding energy, food, alcohol, and tobacco) rose by 2.9% in the 12 months to August 2026, unchanged from the 12 months to July; the CPIH goods annual rate rose from 2.2% to 2.7%, while the CPIH services annual rate was unchanged, at 3.6%,” ONS said.

“Core CPI (CPI excluding energy, food, alcohol, and tobacco) rose by 2.6% in the 12 months to August 2026, unchanged from the 12 months to July.”

The statistics office said the CPI goods annual rate rose from 2.2 percent to 2.7 percent, while the CPI services annual rate was unchanged at 3.4 percent.

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