Stories

Wed, 16 Sep 2026

Wed, 16 Sep 2026 Petrol and diesel price rises push UK inflation higher

Summer holidays and disruption to global oil supplies by the Middle East conflict stoked price growth.

* UK inflation rose to its highest level in five months, reaching 3.1% in August
* Petrol prices jumped to their highest level since November 2022, with an average price of 161.3p per litre
* Diesel prices also increased, with a rise of 23% compared to August last year
* The cost of flying rose during the summer getaways period, contributing to higher airfares
* Oil prices hit over $91 a barrel, up from around $73 before the conflict in the Middle East began
* Economists predict that inflation will peak at 4.2% in January due to higher oil and gas prices
* The Bank of England is meeting on Thursday to decide whether to change interest rates, which currently stand at 3.75%
* Chancellor John Healey said the UK economy is "proving resilient" despite global uncertainty