Inflation rises to 3.1% as petrol prices jump – but food inflation stays low at 1.3%

Prices rose by 3.1% in the year to August 2026, up from 2.9% in July, according to the Office for National Statistics (ONS). The wider CPIH measure, which includes housing costs, rose to 3.3%.

Fuel is doing the damage

The biggest push came from motor fuels. The ONS said the average price of petrol rose by 9.1p a litre in August, to 161.3p – the highest since November 2022. Diesel rose by 14.2p a litre. Over the year, fuel prices were up 23%. Air fares also climbed 6.2% between July and August, a bigger summer rise than last year.

Better news at the tills

Food and non-alcoholic drink inflation was 1.3% in August, unchanged from July and the equal lowest rate since August 2024. Food prices are still rising, but much more slowly than overall prices. Clothing and footwear inflation was just 0.2%.

What this means for you

Your weekly shop is not the main pressure right now – getting around is. Driving costs are rising quickly, and the Bank of England expects overall inflation to climb towards 4% by early 2027 as higher energy costs feed through.

Ways to save

• Use a fuel price comparison app or website before you fill up. Supermarket forecourts are often cheaper than motorway services, and the gap can be several pence a litre.
• Drive more efficiently: check tyre pressures, remove roof boxes when not in use, and combine short trips.
• With food inflation low, lock in the savings by sticking to a list, trying own-brand ranges and using loyalty schemes and price-match offers.

Sources: Office for National Statistics, Bank of England