UK's annual inflation rises to 3.1% in August

The annual inflation rate in the UK increased to 3.1% in August, up from 2.9%, official figures showed on Wednesday.

Transport, particularly motor fuels, made the largest upward contribution to the inflation rate, the Office for National Statistics (ONS) stated.

"Prices in the transport division rose overall by 4.6% in the 12 months to August 2026, up from 3.6% the previous month," the office said.

Housing and household services followed transport in August.

"The 12-month rate for housing and household services was 4.3% in August 2026, up from 4.1% in July," it added.

On a monthly basis, consumer prices rose by 0.5% in August, up from 0.3% in July.

Core inflation, excluding energy, food, alcohol and tobacco, was 2.6% in the country.