UK consumer-price inflation rose from 2.9% in July to 3.1% in August, sharpening pressure on household budgets just as attention turns to the Bank of England’s next rates decision and the government’s forthcoming Budget.

The common starting point across the debate is the immediate cause of the rise. The Office for National Statistics said petrol and diesel prices increased sharply, with higher long-haul air fares also adding to the August figure. Petrol averaged 161.3p a litre — its highest level since November 2022 — while diesel averaged 181.8p.¹

The government attributes those increases chiefly to external events. Chancellor John Healey said the Middle East war was affecting inflation worldwide, visible in household bills, food shopping and fuel costs. He argued that ministers had already offered some relief by cutting tax on electricity bills, capping bus fares at £2 and lowering rates for certain hospitality and live-music venues.¹

Conservative critics accept that families face higher prices but place the emphasis elsewhere. Shadow Chancellor Andrew Griffith said that “every family is paying the price for Labour’s choices,” arguing that employer National Insurance changes, employment rules and energy policy were being passed on to consumers.² That account contrasts with the government’s focus on imported energy costs, though both sides portray inflation as a direct strain on weekly spending.

The criticism extends beyond party politics. Unite general secretary Sharon Graham said workers were “sick of paying for crises they did not cause,” calling for tax thresholds to be unfrozen and for energy profits to help subsidise household and industrial bills.² Rupert Lowe similarly argued on X that inflation “makes ordinary people poorer,” framing tighter price control as central to his economic platform.Rupert Lowe MP (RupertLowe10)³

With inflation still above the Bank’s 2% target, the disagreement is now less over whether costs are rising than over who should bear the response: monetary policy, government relief, or changes to taxes and energy policy.