Inflation in the UK has risen, putting households under renewed financial pressure.
The consumer prices index, which measures the cost of goods and services across the economy, has risen to 3.1% in the year to August, up from 2.9% in July.
On a monthly basis, CPI rose by 0.5% in August, driven by “transport, particularly motor fuels”, the Office for National Statistics (ONS) said.
Motor fuel prices across the UK soared by 23% in the 12 months to August, today’s inflation report shows.
That is up from 15.5% in the year to July, with petrol prices hitting their highest level since November 2022.
The ONS reports that the average price of petrol rose by 9.1p a litre between July and August, to an average price of 161.3p a litre.
Diesel prices rose by 14.2p a litre in August, to an average of 181.8p a litre.
Air fares rose by 6.2% between July and August 2026, the inflation report shows.
This was mainly down to long-haul routes, where fares rose in August 2026 compared with a fall a year ago.
Worryingly, the cost of goods produced by UK factories rose at a faster rate in August, too.
Producer output prices – or the cost of goods at the “factory gate” – rose by 3.7% in the year to August, up from 3.3% in July.
The ONS reports that the 12-month inflation rate for food and non-alcoholic beverages was 1.3% in August 2026, unchanged from July. It was last lower than this in September 2021.
Prices of chocolate confectionery rose by less than a year ago, while meat prices fell slightly in August.
Today’s key events
• 9.30am BST: UK housing prices and rents report
• 1.30pm BST: US retail sales report
• 7pm BST: Federal Reserve interest rates decision
• 7.30pm BST: Federal Reserve press conference
We’ll be tracking all the main events throughout the day on our business live blog …
