CBI responds to latest inflation data for August 2026

Martin Sartorius, CBI Lead Economist, said:

“Higher fuel prices caused inflation to accelerate further in August. With tensions escalating across the Middle East, we expect that increased energy costs and some passthrough to domestic prices will further push up inflation over the months ahead.

“Given the limited signs of a pick-up in domestic price pressures, the Bank of England’s Monetary Policy Committee is likely to keep interest rates unchanged at its next meeting. However, the renewed rise in energy prices means that the Committee will be increasingly alert to the risk of these costs feeding through to persistently elevated inflation.”