The UK inflation rate was 3.6 percent in June 2025, up from 3.4 percent in the previous month, and the fastest rate of inflation since January 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years. As of the most recent month, prices were rising fastest in the communications sector, at 6.1 percent, but were falling in both the furniture and transport sectors, at -0.3 percent and -0.6 percent, respectively.
The Cost of Living Crisis High inflation is one of the main factors behind the ongoing Cost of Living Crisis in the UK, which, despite subsiding somewhat in 2024, is still impacting households going into 2025. In December 2024, for example, 56 percent of UK households reported their cost of living was increasing compared with the previous month, up from 45 percent in July, but far lower than at the height of the crisis in 2022. After global energy prices spiraled that year, the UK's energy price cap increased substantially. The cap, which limits what suppliers can charge consumers, reached 3,549 British pounds per year in October 2022, compared with 1,277 pounds a year earlier. Along with soaring food costs, high-energy bills have hit UK households hard, especially lower income ones that spend more of their earnings on housing costs. As a result of these factors, UK households experienced their biggest fall in living standards in decades in 2022/23. Global inflation crisis causes rapid surge in prices The UK's high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic. Following the initial waves of the virus, global supply chains struggled to meet the renewed demand for goods and services. Food and energy prices, which were already high, increased further in 2022. Russia's invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia. The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops. As a result of these factors, inflation surged across Europe and in other parts of the world, but typically declined in 2023, and approached more usual levels by 2024.

In July 2025, the UK inflation rate for goods was 2.7 percent and five percent for services. Prices for goods accelerated significantly, sharply between 2021 and 2022, before falling in 2023. By comparison, prices for services initially grew at a more moderate rate but have also not fallen as quickly. The overall CPI inflation rate for the UK reached a recent high of 11.1 percent in October 2022 and remained in double figures until April 2023, when it fell to 8.7 percent. As of this month, the UK's inflation rate was 3.6 percent, up from 3.4 percent in the previous month. Sectors driving high inflation In late 2024, communication was the sector with the highest inflation rate, with prices increasing by 6.1 percent as of December 2024. During the recent period of high inflation that eased in 2023, food and energy prices were particular high, with housing and energy inflation far higher than in any other sector, peaking at 26.6 percent towards the end of 2022. High food and energy prices since 2021 have been one of the main causes of the cost of living crisis in the UK, especially for low-income households that spend a higher share of their income on these categories. This is likely one of the factors driving increasing food bank usage in the UK, which saw approximately 3.12 million people use a food bank in 2023/24, compared with 1.9 million just before the COVID-19 pandemic. The global inflation crisis The UK has not been alone in suffering rapid price increases since 2021. After the start of the COVID-19 pandemic, a series of economic and geopolitical shocks had a dramatic impact on the global economy. A global supply chain crisis failed to meet rising demand in 2021, leading to the beginning of an Inflation Crisis, which was only exacerbated by Russia's invasion of Ukraine in February 2022. The war directly influenced the prices of food and energy, as both countries were major exporters of important crops. European imports of hydrocarbons from Russia were also steadily reduced throughout 2022 and 2023, resulting in higher energy prices throughout the year.

Comprehensive database of time series covering measures of inflation data for the UK including CPIH, CPI and RPI.

Inflation, consumer prices (annual %) in United Kingdom was reported at 3.2716 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. United Kingdom - Inflation, consumer prices (annual %) - actual values, historical data, forecasts and projections were sourced from the World Bank on September of 2025.

Inflation Rate in the United Kingdom increased to 3.80 percent in July from 3.60 percent in June of 2025. This dataset provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In July 2025, the Consumer Price Index including owner occupiers' housing costs (CPIH) inflation rate of the United Kingdom was *** percent, up from *** percent in the previous month. The inflation rate fell noticeably after the COVID-19 pandemic but rose sharply between Spring 2021 and Autumn 2022. After peaking at *** percent in October 2022, CPIH inflation declined throughout 2023 and into 2024, falling to *** percent by September of that year, before increasing again recently. Cost of living problems persist into 2025 Although it is likely that the worst of the recent inflation surge may have passed, the issues caused by it look set to linger into 2025 and beyond. While the share of households experiencing living cost rises has fallen from ** percent in August 2022, to ** percent in July 2024, this share rose towards the end of the year, with more than half of households reporting rising costs in December. Even with lower inflation, overall consumer prices have already increased by around ** percent in the last three years, rising to almost ** percent for food prices, which lower income households typically spend more of their income on. The significant increase in people relying on food banks across the UK, is evidence of the magnitude of this problem, with approximately **** million people using food banks in 2023/24. Other measures of inflation While the CPIH inflation rate displayed here is the preferred index of the UK's Office of National Statistics, the Consumer Price Index (CPI) is often more prominently featured in the media in general. An older index, the Retail Price Index (RPI) is also still used by the government to calculate certain taxes and rail fares. Other metrics include the core inflation rate, which measures price increases without the volatility of food and energy costs, while price increases in goods and services can also be tracked separately. The inflation rate of individual sectors can also be measured, and as of December 2024, prices were rising fastest in the communications sector, at *** percent, with costs falling in the transport and furniture sectors.

Almost one-third of surveyed UK consumers stated that they did not purchase food and beverage products recently due to increasing grocery costs. Saving money was the second most stated reason during the survey in 2025.

In 2024, the annual inflation rate for the United Kingdom was 2.5 percent, with the average rate for 2025 predicted to rise to 3.2 percent, revised upwards from an earlier prediction of 2.6 percent. The UK has only recently recovered from a period of elevated inflation, which saw the CPI rate reach 9.1 percent in 2022, and 7.3 percent in 2023. Despite an uptick in inflation expected in 2025, the inflation rate is expected to fall to 2.1 percent in 2026, and two percent between 2027 and 2029. UK inflation crisis Between 2021 and 2023, inflation surged in the UK, reaching a 41-year-high of 11.1 percent in October 2022. Although inflation fell to more usual levels by 2024, prices in the UK had already increased by over 20 percent relative to the start of the crisis. The two main drivers of price increases during this time were food and energy inflation, two of the main spending areas of UK households. Although food and energy prices came down quite sharply in 2023, underlying core inflation, which measures prices rises without food and energy, remained slightly above the headline inflation rate throughout 2024, suggesting some aspects of inflation had become embedded in the UK economy. Inflation rises across in the world in 2022 The UK was not alone in suffering from runaway inflation over the last few years. From late 2021 onwards, various factors converged to encourage a global acceleration of prices, leading to the ongoing inflation crisis. Blocked-up supply chains were one of the main factors as the world emerged from the COVID-19 pandemic. This was followed by energy and food inflation skyrocketing after Russia's invasion of Ukraine. Central bank interest rates were raised globally in response to the problem, possibly putting an end to the era of cheap money that has defined monetary policy since the financial crash of 2008.

As of the second quarter of 2025, the CPIH index in the United Kingdom was ***, indicating that consumer goods and services had increased in price by ** percent when compared with the baseline year of 2015. In June 2025, the CPIH inflation rate was *** percent, unchanged from the previous month. The CPIH index is the consumer price index, which also includes costs related to owning and maintaining a home. Inflation falls to more usual levels in 2024 After reaching a peak of *** percent in October 2022, the CPIH inflation rate fell throughout 2023 and into 2024, eventually falling to a low of *** percent in October 2024. Although the decline in energy inflation led to a significant fall in prices early in the 2023, other aspects of inflation, such as food prices remained high for a longer period. Throughout 2023 inflation in the UK was still quite high across many sectors, indicated by persistently high core inflation (inflation excluding food and energy prices) rates reported that year. UK economy continues to struggle Since the COVID-19 pandemic, the UK's economic performance has been quite lackluster. Although the economy bounced back from the initial drop in GDP caused by lockdowns, it has alternated between months of low growth and declines in GDP since 2021. In the last two quarters of 2023, the UK economy shrank by *** percent and then by *** percent. As a result, the UK economy officially ended 2023 in a technical recession. While growth picked up in the first half of 2024, there was no growth in the third quarter of the year.

Construction Output Price Indices (OPIs) from January 2014 to June 2025, UK. Summary

Context

Demand for houses has exploded in the UK in the last two years due to the pandemic. As a result, it feels like it is becoming more difficult for young people to afford to buy a house in the near future. I wanted to collect data to see if this sentiment is backed up by numbers.

Content

In this folder you will find the average house price in the UK between between 1975 and 2020, the median wage in the UK between 1999 and 2020. Both of these metrics have been adjusted by inflation up to 2020.

This folder also contains a table containing data on the wage gap in 2021, in the UK and by age group.

Sources

Statista: https://www.statista.com/statistics/802183/annual-pay-employees-in-the-uk/ and https://www.statista.com/statistics/1002964/average-full-time-annual-earnings-in-the-uk/.

allAgents: https://www.allagents.co.uk/house-prices-adjusted/.

Bank of England: https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator.

The aim is to forecast the chief components of inflation (such as changes in fuel prices, food prices and prices of durable goods) for the USA, UK and South Africa, and to test whether the weighted sum of the component forecasts gives a more accurate overall forecast for inflation, than simply forecasting overall inflation itself. In the long run, the ratios of these prices to the overall consumer price index have altered because of technological changes and globalization, among other factors. For example, the prices of internationally traded consumer goods have fallen relative to prices of services. By building separate models for the components, the long-run information in the data and specific economic features likely to drive each component can be exploited. These models will test for asymmetries, such as the tendency of petrol prices to respond faster to rises than to falls in oil prices. The models should help better understand the causes of overall inflation through understanding the inflation trends of the underlying sectors. Modelling the components separately should also highlight where interest rate policy could be effective, and where other policies such as competition policy or price regulation might have complementary benefits.

Inflation is generally defined as the continued increase in the average prices of goods and services in a given region. Following the extremely high global inflation experienced in the 1980s and 1990s, global inflation has been relatively stable since the turn of the millennium, usually hovering between three and five percent per year. There was a sharp increase in 2008 due to the global financial crisis now known as the Great Recession, but inflation was fairly stable throughout the 2010s, before the current inflation crisis began in 2021. Recent years Despite the economic impact of the coronavirus pandemic, the global inflation rate fell to 3.26 percent in the pandemic's first year, before rising to 4.66 percent in 2021. This increase came as the impact of supply chain delays began to take more of an effect on consumer prices, before the Russia-Ukraine war exacerbated this further. A series of compounding issues such as rising energy and food prices, fiscal instability in the wake of the pandemic, and consumer insecurity have created a new global recession, and global inflation in 2024 is estimated to have reached 5.76 percent. This is the highest annual increase in inflation since 1996. Venezuela Venezuela is the country with the highest individual inflation rate in the world, forecast at around 200 percent in 2022. While this is figure is over 100 times larger than the global average in most years, it actually marks a decrease in Venezuela's inflation rate, which had peaked at over 65,000 percent in 2018. Between 2016 and 2021, Venezuela experienced hyperinflation due to the government's excessive spending and printing of money in an attempt to curve its already-high inflation rate, and the wave of migrants that left the country resulted in one of the largest refugee crises in recent years. In addition to its economic problems, political instability and foreign sanctions pose further long-term problems for Venezuela. While hyperinflation may be coming to an end, it remains to be seen how much of an impact this will have on the economy, how living standards will change, and how many refugees may return in the coming years.

Inflation Rate in Poland decreased to 2.80 percent in August from 3.10 percent in July of 2025. This dataset provides the latest reported value for - Poland Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Quarterly house price data based on a sub-sample of the Regulated Mortgage Survey.

Consumer price index (2010 = 100) in United Kingdom was reported at 147 in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. United Kingdom - Consumer price index (2010 = 100) - actual values, historical data, forecasts and projections were sourced from the World Bank on September of 2025.

There are a number of differences between the Consumer Prices Index (CPI) and Retail Prices Index (RPI), including their coverage, population base, commodity measurement and methods of construction. Combined, these differences have meant that, for most of its history, the CPI has been lower than the RPI. One of the main reasons to this difference is the method of construction at the lowest level, where different formulae are used in the CPI and RPI to combine individual prices. This difference is usually referred to as the formula effect. This article will investigate similar formula effects present in the inflation measures of other countries, and where necessary will attempt to explain why the magnitude of the formula effect experienced by other countries differs from that of the UK. Source agency: Office for National Statistics Designation: National Statistics Language: English Alternative title: International Comparison

As of April 2025, the inflation rate in the European Union was 2.4 percent, with prices rising fastest in Romania, which had an inflation rate of 4.9 percent. By contrast, both France and Cyprus saw low inflation rates during the same period, with France having the lowest inflation rate in the EU during this month. The rate of inflation in the EU in the October 2022 was higher than at any other time, with the peak prior to 2021 recorded in July 2008 when prices were growing by 4.4 percent year-on-year. Before the recent rises in inflation, price rises in the EU had been kept at relatively low levels, with the inflation rate remaining below three percent between January 2012 and August 2021. Rapid recovery and energy costs driving inflation The reopening of the European economy in 2021 following the sudden shock of COVID-19 in 2020 is behind many of the factors that have caused prices to rise so quickly in 2022. Global supply chains have not yet recovered from production issues, travel restrictions, and workforce problems brought about by the pandemic. Rising energy costs have only served to exacerbate supply problems, particularly with regard to the transport sector, which had the highest inflation rate of any sector in the EU in December 2021. High inflation rates mirrored in the U.S. The high inflation rates seen in Europe have been reflected in other parts of the world. In the United States, for example, the consumer price index reached a 40-year-high of seven percent in December 2021, influenced by many of the same factors driving European inflation. Nevertheless, it is hoped that once these supply chain issues ease, inflation levels will start to fall throughout the course of 2022.