Summer holidays and disruption to global oil supplies by the Middle East conflict stoked price growth.
By Dearbail Jordan Business reporter Published 16 September 2026, 07:06 BST Updated 1 hour ago Rises in petrol, diesel and airfares pushed UK inflation up to its highest level in six months in the year to August.
Inflation accelerated to 3.1% from 2.9% , according to the Office for National Statistics (ONS).
The cost of filling up a vehicle soared in August as the conflict in the Middle East continued to disrupt global oil supplies. Petrol prices jumped to their highest for nearly four years, the ONS said, while diesel also rocketed.
Meanwhile, the cost of flying jumped during the key month for summer getaways.
Overall, motor fuel prices rose by 23% compared to August last year.
Oil hit more than $91 a barrel as the US-Israel war with Iran went on. That compares to around $73 just before hostilities began earlier this year.
As a result, average petrol prices have continued to climb and between July and August, they rose by 9.1p to 161.3p per litre.
"This is the highest price recorded since November 2022," said the ONS. At that point, Russia's full-scale invasion of Ukraine had pushed up global energy costs.
Capital Economics said, at this point, the effect of higher oil prices has not spilled over into other areas such as food and drink, where the pace of inflation remained at 1.3% in the year to August.
But its chief UK economist, Paul Dales, said: "Everyone knows that bigger rises in inflation are on their way."
Grant Fitzner, chief economist at the ONS, said: "Rising crude oil and petrol prices increased both the annual cost of raw materials and the price of goods leaving factories respectively."
Dales estimates that a combination of higher oil and gas prices and "the eventual 'first-round' effect of businesses passing on some of their higher energy costs" will lead to inflation peaking at 4.2% in January.
'Things are down' Image caption, Goran Raven says changes in the oil price have a "real-time impact" on small petrol retailers like him
As well as hitting drivers in the pocket, higher oil prices also affect forecourts.
Goran Raven, owner of Essex petrol station RJ Raven, told the BBC: "Things are down. We've got lots of pressure on us at the moment. I'd say we're about 20% down on this time last year."
Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via BBC Business.
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