Economy & Trade
UK inflation rises to 3.1% as fuel prices climb
UK annual inflation rose to 3.1% in August from 2.9% in July, the Office for National Statistics said on Wednesday, as fuel prices increased.
The figure was based on the Consumer Prices Index for the 12 months to August.
Higher inflation adds pressure on Prime Minister Andy Burnham and finance minister John Healey before the Labour government's budget update next month. The Bank of England is forecast to keep its benchmark interest rate at 3.75% on Thursday as the UK economy struggles for growth.
Healey has pledged to maintain strict fiscal discipline, but has not said whether the October 28 budget will include tax rises.
Richard Carter, head of fixed interest research at Quilter Cheviot, said inflation was expected to keep rising at least until the end of the year, citing the situation in the Middle East.
Update
The Bank of England is forecast to keep its benchmark interest rate at 3.75% on Thursday.
The Labour government's budget update is scheduled for October 28.
Finance minister John Healey has pledged to maintain strict fiscal discipline but has not said whether the budget will include tax rises.
Richard Carter of Quilter Cheviot said inflation was expected to keep climbing at least until the end of the year because of the Middle East situation.
Source note: AFP news report published on 16 September 2026 at 06:33:37 UTC.
Update
The Office for National Statistics identified the measure as the Consumer Prices Index.
The annual CPI rate rose from 2.9% in July to 3.1% in August.
The rise came as fuel prices increased amid the Middle East war.
Source note: AFP news report published on 16 September 2026 at 06:15:34 UTC.
Uncertainty notes
The supplied material says the inflation figure was in line with analysts' expectations but does not name a specific source for those expectations.
Healey has not said whether the October 28 budget will include new tax rises.
Source
AFP news report published on .