What is inflation and why are some prices going up?

- Published
You may have heard grown-ups talking a lot more about the price of things, or you might have noticed changes in your life because your family is trying to save money.
New data has shown that UK inflation has gone up - inflation is a measure of how fast prices of certain goods and services are changing over a period of time.
The rate of UK inflation rose to 3.1% in the year to August, according to figures from the Office for National Statistics (ONS).
It says that the rising cost of filling cars up with petrol or diesel is playing a big part in the rise, as is the growing cost of air fares.
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What is inflation?

Inflation refers to the rise in the cost of certain goods and services over a period of time.
There are lots of reasons why this rise can happen.
Big global events, decisions made by governments, and even the weather can play a part.
To work out the rise, the cost of things people need day-to-day - like food, fuel and clothes, are compared to the cost for the same things at an earlier date.
The difference, in percentage, is called the inflation figure.
This shows whether the cost of things is going up or down.
When inflation is high, it means the cost of living goes up too - so things like food, household bills, clothes and travel can become more expensive.
When is inflation a problem?

If wages (what people are paid for the work they do) or benefits (money the government pays to support those in financial need) increase at the same rate as inflation, then inflation does not have such a big impact.
When someone's wages or benefits don't rise in line with inflation, then the true value of the money they have goes down.
Simply put - the price of the things we need to spend our money on goes up, but the amount we have to spend does not.
And this can make life harder for people - because paying for rent, food or even a TV subscription suddenly becomes more expensive than it was before.
Why is inflation a problem now?

Inflation is affected by lots of different factors.
One big factor right now is the cost of fuel - both to fill cars and lorries and to transport goods.
The ONS says transport, "particularly motor fuels", made the largest contribution to inflation going up.
BBC Cost of Living correspondent Kevin Peachey says: "Today's figure is pretty much in line with expectations... The increase would have been seen by drivers because it was partly the result of higher motoring costs, particularly fuel.
"That was expected and reflects the effect at the pumps on international events."
Watch: What is the Strait of Hormuz and why does it matter? (April 2026)
Petrol and diesel prices have increased as the conflict in the Middle East has continued to disrupt supplies of oil around the world.
About 20% of the world's oil and liquefied natural gas is shipped from countries in the area.
One of Iran's responses to US-Israel attacks has been to blockade the Strait of Hormuz - a major route for fuel being sent around the world - which has had an impact on that and on the prices people pay for things in many countries, including the UK.