ONS publishes detailed CPI and CPIH figures for August 2026

UK consumer price inflation rose in August 2026, according to detailed figures published by the Office for National Statistics. The CPI rose by 3.1 per cent in the 12 months to August 2026, up from 2.9 per cent in the 12 months to July, while CPIH rose by 3.3 per cent, up from 3.1 per cent¹. On a monthly basis, both CPIH and CPI rose by 0.5 per cent in August 2026, compared with a rise of 0.3 per cent in August 2025¹.

The ONS said transport, particularly motor fuels, made the largest upward contribution to the change in the annual rate. The average price of petrol rose by 9.1 pence per litre between July and August 2026, to 161.3 pence per litre, the highest price recorded since November 2022, while diesel rose by 14.2 pence per litre to 181.8 pence per litre. Overall motor fuel prices rose by 23.0 per cent in the 12 months to August 2026, compared with 15.5 per cent in the previous month¹. Prices in the transport division rose by 4.6 per cent over 12 months, up from 3.6 per cent in July¹.

Core inflation measures were unchanged. Core CPIH, which excludes energy, food, alcohol and tobacco, rose by 2.9 per cent in the 12 months to August 2026, unchanged from July, and core CPI rose by 2.6 per cent, also unchanged¹. The CPIH goods annual rate rose from 2.2 per cent to 2.7 per cent, while the CPIH services annual rate was unchanged at 3.6 per cent¹. The ONS said the owner occupiers' housing costs component accounts for approximately 18 per cent of CPIH; those costs rose by 3.9 per cent over 12 months, up from 3.7 per cent¹. The annual RPI inflation rate was 3.4 per cent in August 2026¹.

Source: ONS, Consumer price inflation, UK: August 2026¹

Separate ONS figures reported the same day showed the average UK house price increased by 1.4 per cent to £273,000 in the 12 months to July, with annual growth slowing from 1.5 per cent in June. The average monthly private rent in the UK was £1,400 in August, £52, or 3.8 per cent, higher than 12 months earlier, with annual growth accelerating from 3.7 per cent in July².

Why it matters for households

Higher annual inflation means the average level of prices is rising faster than a month earlier, though the effect differs by spending pattern. The ONS said the increase between July and August 2026 reflected upward contributions from six divisions, partially offset by downward contributions from two, with no large offsetting downward contributions¹. Food and non-alcoholic beverage inflation was 1.3 per cent, unchanged from July and the lowest rate since September 2021, when it was 0.8 per cent¹. Housing and household services inflation was 4.3 per cent, with electricity, gas and other fuels at 6.0 per cent over 12 months¹.

For homeowners and renters, the housing figures cover the 12 months to July for house prices and August for rents². The Bank of England's base rate was held at 3.75 per cent at its September 2026 decision³. Market expectations reported before that decision put a one in five chance of a rate rise, with investors betting on four increases by the end of 2027, down from five expected earlier in the week⁴. Ten-year UK bond yields fell close to 5.28 per cent, having spiked to a 19-year high of nearly 5.44 per cent earlier in the week⁴.

What happens next

The next CPI and CPIH release is scheduled for 21 October 2026¹. The Bank of England's next monetary policy decision was expected on 5 November 2026⁴. The ONS said that from 2030 at the earliest, CPIH methods and data sources will be introduced into the RPI, as set out in the Authority's response to the joint consultation on reforming RPI methodology¹. The ONS also said it identified a minor error in the classification of several products in its scanner-based consumption segments from February 2026, and that from publication in March 2026 the dataset no longer includes price quote data for food and non-alcoholic beverages, and alcohol and tobacco¹.