Petrol and diesel price rises push UK inflation higher
UK inflation rose to 3.1% in August, driven primarily by surging petrol and diesel prices linked to Middle East conflict. Economists warn that further inflationary pressure is expected as businesses pass on higher energy costs to consumers.
Why it matters
Rising inflation impacts household purchasing power and influences central bank interest rate decisions, affecting the broader UK economy.
By Dearbail Jordan Business reporter Published 16 September 2026, 07:06 BST Updated 19 minutes ago Rises in petrol, diesel and airfares pushed UK inflation up to its highest level in five months in the year to August.
Inflation accelerated to 3.1% from 2.9%, according to the Office for National Statistics (ONS).
The cost of filling up a vehicle soared in August as the conflict in the Middle East continued to disrupt global oil supplies. Petrol prices jumped to their highest for nearly four years, the ONS said, while diesel also rocketed.
Meanwhile, the cost of flying jumped during the key month for summer getaways.
Overall, motor fuel prices rose by 23% compared to August last year.
Oil hit more than $91 a barrel as the US-Israel war with Iran went on. That compares to around $73 just before hostilities began earlier this year.
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