U.K. consumer-price inflation accelerated to 3.1% in August 2026 from 2.9% in July as rising petrol and diesel prices increased transport costs, according to the Office for National Statistics. The result matched the median economist forecast but exceeded the Bank of England's 2.8% projection. Motor fuel prices were 23% higher than a year earlier, with oil trading above $100 a barrel amid the war in Iran. Core inflation held at 2.6% for a fourth month and services inflation remained at 3.4%, indicating stable underlying domestic price pressures despite the energy-driven headline increase. Producer-price measures also strengthened, with output prices rising 3.7% and input prices increasing 6.1% annually. The Bank of England is expected to leave rates unchanged at 3.75% on Thursday, although prolonged energy-price pressure, potential food-price risks and a projected January reset of the household energy price cap could complicate that stance.