UK Inflation August 2026: Rate Rises to 3.1%
UK Inflation August 2026 rose to 3.1% in the year to August, according to the latest figures from the UK’s Office for National Statistics (ONS). The rate increased from 2.9% in July, marking another rise in annual consumer price inflation.
The latest increase means UK inflation is now further above the Bank of England’s 2% target. On a monthly basis, consumer prices rose by 0.5% in August, compared with a 0.3% increase in August 2025.
Higher transport and energy-related costs were among the factors putting upward pressure on prices. The ONS said there was a large upward contribution from energy, particularly liquid fuels, vehicle fuels and lubricants.
The broader CPIH measure, which also includes owner-occupiers’ housing costs, rose to 3.3% in August from 3.1% in July. Owner-occupier housing costs increased by 3.9% over the year.
The latest figures come as households continue to face higher costs for several essential goods and services. Average UK private rents also increased by 3.8% in the 12 months to August, reaching an average of £1,400 per month, according to separate ONS data.
The inflation figures are also being closely watched ahead of the Bank of England’s September interest-rate decision. The central bank has kept its focus on bringing inflation back towards its 2% target.
The latest data show that price pressures remain an important issue for the UK economy. Future inflation figures will depend on developments in energy prices, transport costs, household spending and other areas of the economy.
