The UK’s rate of inflation rose to 3.1% in the 12 months to August, as soaring motor fuel and energy prices pushed price growth up.
The latest inflation reading from the Office for National Statistics (ONS) showed price growth, as measured by the Consumer Prices Index (CPI), is now at its highest level since December 2025.
The largest contributor to inflation in August was the transport sector. This includes motor fuel prices, which have reached the highest level since 2022.
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Although inflation had been falling moderately between March and June, it has since been rising and forecasts suggest it could reach as high as 4% by the start of 2027.
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Next UK inflation figures
In the UK, the main measure of inflation is CPI. The Office for National Statistics (ONS) releases the latest figures once a month. Each reading covers the previous month.
CPI release dates for 2026
- 21 October (covering September)
- 18 November (covering October)
- 16 December (covering November)
- 20 January 2027 (covering December)
What time is CPI released in the UK?
The ONS publishes the latest inflation data at 7am on the above release days.
All key macroeconomic data from the ONS is published at 7am – this includes GDP, labour market and wage data.
What is CPI and how is it calculated?
CPI, the main measure of inflation used in the UK, tells you how fast the cost of living is increasing (or decreasing).
It is calculated using a basket of typical household goods and services which changes once per year to reflect current trends and consumption. For example, houmous and non-alcoholic beer were added to the basket in 2026.
The Bank of England keeps a close eye on CPI when setting interest rates. If inflation is too high, the Bank may raise interest rates to slow consumer spending and cool the economy.
This works to bring prices down because households have less money to spend when mortgage rates are high and debts are more expensive to repay.
Meanwhile, if inflation is too low, the Bank may reduce interest rates so consumers have more disposable income to spend. Due to the laws of supply and demand, this should push prices back up and stimulate growth in the economy.
