UK CPI inflation accelerated to +3.1% YoY in August from +2.9% in July, while prices rose +0.5% MoM. Annual inflation has now increased for two consecutive months after reaching +2.6% in June.

• Transport was the largest upward driver, with prices rising +4.6% YoY and +1.5% MoM. Motor fuel inflation jumped to +23.0% YoY from +15.5% in July, while air fares increased +6.2% MoM.
• Petrol prices increased 9.1p MoM to 161.3p/litre, the highest since November 2022, while diesel rose 14.2p to 181.8p/litre. Food inflation was unchanged at +1.3% YoY, while housing & household services accelerated to +4.9%.
• Core CPI remained unchanged at +2.6% YoY, with services inflation steady at +3.4%. Goods inflation accelerated to +2.7% from +2.2%, reaching its highest rate since September 2025.