UK inflation hits 3.1% in August as motor fuel prices jump 23%

In August, British consumer price inflation reached 3.1% over the past year, as forecasted, with motor fuel costs significantly contributing to the rise, according to the Office for National Statistics. This marks a slight increase from 2.9% in July. On a monthly basis, inflation also matched expectations, with prices increasing by 0.5% in August, up from 0.3% in July.

The average petrol price climbed to 161.3 pence per litre, the highest since November 2022, after rising 9.1 pence per litre from July. Diesel prices saw a similar surge, reaching an average of 181.8 pence per litre, up 14.2 pence per litre from July. Overall, motor fuel prices surged by 23% in the year to August, compared to 15.5% the previous month.

Core CPI, excluding energy, food, alcohol, and tobacco, remained steady at 2.6%, unchanged from July. The broader CPIH, including owner occupiers' housing costs, rose 3.3% over the past year, up from 3.1% in July.