FX.co ★ UK CPI Quickens to 3.1% in August, Ending Recent Disinflation Trend

The United Kingdom’s annual inflation rate edged higher in August 2026, with the Consumer Price Index (CPI) rising 3.1% year-over-year, up from 2.9% in July 2026. The latest data, updated on 16 September 2026, marks a shift away from the recent gradual easing of price pressures.

On a year-over-year basis, the August reading indicates that prices increased more quickly than in the previous month when measured against the same period a year earlier. In July, CPI had shown a 2.9% rise versus July of the previous year, while August’s 3.1% figure reflects a faster pace of inflation compared with August a year ago.

The uptick suggests that inflationary pressures remain persistent, complicating the broader outlook for price stability. Market participants and policymakers will be watching upcoming data closely to assess whether August’s acceleration is a temporary blip or the start of a renewed upward trend in consumer prices.