The UK’s annual inflation rate rose to 3.1% in August 2026, the highest level in five months, in line with market expectations and up from 2.9% in July. Transport costs, particularly motor fuels, made the largest upward contribution to the annual rate, with transport inflation rising to 4.6% from 3.6% in July. Petrol prices rose 9.1 pence per litre to 161.3 pence, while diesel prices increased 14.2 pence to 181.8 pence, pushing motor fuel inflation to 23.0% from 15.5%. Housing and household services inflation also increased to 4.9% from 4.6%, while food inflation was unchanged at 1.3%. Core CPI inflation held at 2.6%, with goods inflation rising to 2.7% from 2.2% and services inflation unchanged at 3.4%.