In July 2025, 59 percent of households in Great Britain reported that their cost of living had increased in the previous month, compared with 72 percent in April. Although the share of people reporting a cost of living increase has generally been falling since August 2022, when 91 percent of households reported an increase, the most recent figures indicate that the Cost of Living Crisis is still ongoing for many households in the UK. Crisis ligers even as inflation falls Although various factors have been driving the Cost of Living Crisis in Britain, high inflation has undoubtedly been one of the main factors. After several years of relatively low inflation, the CPI inflation rate shot up from 2021 onwards, hitting a high of 11.1 percent in October 2022. In the months since that peak, inflation has fallen to more usual levels, and was 2.5 percent in December 2024, slightly up from 1.7 percent in September. Since June 2023, wages have also started to grow at a faster rate than inflation, albeit after a long period where average wages were falling relative to overall price increases. Economy continues to be the main issue for voters Ahead of the last UK general election, the economy was consistently selected as the main issue for voters for several months. Although the Conservative Party was seen by voters as the best party for handling the economy before October 2022, this perception collapsed following the market's reaction to Liz Truss' mini-budget. Even after changing their leader from Truss to Rishi Sunak, the Conservatives continued to fall in the polls, and would go onto lose the election decisively. Since the election, the economy remains the most important issue in the UK, although it was only slightly ahead of immigration and health as of January 2025.

In July 2025, 95 percent of households in Great Britain that reported a cost of living increase in the previous month advised that that their food bills had increased, with 57 percent reporting increased gas or electricity bills.

In July 2025, 60 percent of households in Great Britain said that they had started to spend less on non-essentials in response to their cost of living increasing.

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.

After reaching a peak of 10.7 percent in the fourth quarter of 2022, the CPI inflation rate in the United Kingdom has fallen considerably, and was 2.5 percent in the fourth quarter of 2024. In 2025, there is expected to be an uptick in inflation, with prices expected to be increasing by 3.7 percent in the third quarter of 2025, before falling to two percent by the second quarter of 2026. Inflation and the Cost of Living The high inflation experienced by the UK since late 2021 is one of the main factors behind the country's ongoing cost of living crisis. Price surges, in relation to food and energy costs in particular, played havoc with the finances of UK households. At the height of the crisis, around nine out of ten households were experiencing a cost of living increase compared to the previous month. Although inflation has eased since reaching a peak of 11.1 percent in October 2022, and wages are growing in real terms, approximately 59 percent of households were still experiencing rising costs relative to the previous month in March 2025. Economic growth downgraded for 2025 Since 2022, the economy has generally been the main issue for UK voters, seen by 51 percent of people as one of the top three issues facing the country in March 2025. Throughout this time, UK households have struggled through a cost of living crisis, while the wider economy has struggled to achieve consistent growth. Between the first quarter of 2022, the UK economy has alternated between periods of low growth and minor contractions, with the UK even in recession at the end of 2023. While there was a slight uptick in growth in 2024, this momentum appears to have already been lost, with the UK's economic growth forecast for 2025 recently downgraded from two percent to one percent.

The housing costs inflation rate for low-income households in the United Kingdom was noticeably higher than that of high-income ones between April 2022 and April 2023, during a serious cost of living crisis in the UK. As of March 2025, however, the inflation rate for high and medium-income households was slightly higher than that of low incomes ones.

Game and toy manufacturers have contended with numerous headwinds in recent years, ranging from the growing popularity of digital alternatives to fierce import competition from low-cost production countries like China. This has meant manufacturers looking to remain successful had to adapt and cater to shifting consumer needs, like offering educational toys to appeal to parents concerned with high electronic device usage. Revenue is expected to grow at a compound annual rate of 1.6% over the five years through 2025 to €12.9 billion, including a forecast hike of 2.2% in 2025. The tightening cost of living in the two years through 2023 resulted in cash-strapped individuals reining in spending to afford spiralling food and energy prices, hitting demand for games and toys. This also made cheaper games and toys from low-cost production countries more appealing, as they’re often priced lower than European-made games and toys. Another major cause for concern has been the rising popularity of video games, with ownership of electronic devices like smartphones and tablets picking up significantly, weighing on demand for traditional games and toys. Although these headwinds are set to persist over 2025, the cost-of-living crisis is loosening its grip on consumer finances thanks to higher interest rates doing their job to bring down inflation. Uncertainties will persist amid the US’s protectionist policies, but consumer sentiment will edge upwards in line with real household disposable income, driving demand and supporting the average industry profit margin, which is set to reach 9.9% in 2025. Revenue is forecast to climb at a compound annual rate of 8.1% over the five years through 2030 to €19.1 billion. Economic conditions are set to improve, with inflationary pressures easing and real disposable incomes continuing on their upwards trajectory. This will allow manufacturers to compete beyond price, focusing efforts on quality and developing eco-friendly lines. However, competition from digital alternatives will remain fierce as more children shift from traditional toys to more interactive mediums. The regulatory environment will also force manufacturers to adapt, calling for the use of sustainable materials following the introduction of the Ecodesign for Sustainable Products Regulation in 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.

Growing sales of smartphones, Wi-Fi routers and modems have supported electronic equipment wholesalers. Technology advancements and new smartphone model launches have encouraged people to update their handsets more frequently. The replacement cycles of electronic goods have been shortening, with businesses and consumers aiming to keep up-to-date with the latest technology. However, UK business confidence had slipped to its lowest level in over two years in March 2025, according to the Institute of Chartered Accountants in England and Wales. Concerns about tax increases and US President Trump’s trade war have led many companies to hold off on investment, hurting wholesalers’ sales of office supplies. Over the five years through 2025-26, revenue is forecast to contract at a compound annual rate of 0.2% to £19.1 billion. Consumer electronics sales declined during the cost-of-living crisis in 2022-23, but they are gradually rebounding in 2025-26 as inflation eases and household incomes increase. In response to improving economic conditions, the Bank of England reduced its interest rate from 4.5% in February 2025 to 4.25% in May 2025, releasing some disposable income for consumer spending. Nevertheless, price sensitivity remains elevated, prompting businesses to collaborate closely with suppliers to control costs and transfer any savings to customers. In 2025-26, revenue is anticipated to grow by 1.1%. This projection aligns with the Bank of England's forecast of a declining inflation rate for the same period. As inflationary pressures ease, a resurgence in consumer and business demand is set to drive modest revenue expansion. Over the five years through 2030-31, revenue is forecast to grow at a compound annual rate of 2.7% to £21.8 billion. Confidence in global markets is set to recover as inflationary pressures begin to subside. This will encourage businesses to invest and upgrade their technology. As industrial production ramps up to meet global demand, purchase costs could shrink. This adjustment could expand wholesalers’ profit margin. Wholesalers will benefit from the expansion of 5G networks by processing orders more quickly and responding more effectively to market demand. However, upgrading their infrastructure requires both time and financial investment. Major telecom operators, including BT and Vodafone, are partnering with wholesalers like Premier Farnell to supply the devices needed for businesses and households to connect to the enhanced network.

In a January 2025 survey on domestic travel in the United Kingdom, 23 percent of respondents planned to book cheaper accommodation services in the next six months due to the cost of living crisis. Looking for more free activities and spending less on eating out were other popular strategies planned by domestic travelers to save money.

Credit card issuance revenue is slated to dip at a compound annual rate of 7.3% over the five years through 2025-26 to £20.5 billion, including estimated growth of 9.5% in 2025-26. The cost-of-living crisis has been both a blessing and a curse – on the one hand, households have turned to credit cards to pay for necessities as disposable incomes have taken a hit; on the other, it’s caused a higher rate of default and a lower level of total spending. Rampant inflation has made revenue very volatile. Drops in disposable income have left households scrambling to pay for necessities, with the ONS finding that 21% of adults had to use personal loans or credit cards to afford their living costs across 2023-24. Credit card issuers earn a large portion of their revenue from interest income. When the Bank of England ramped up interest rates to curb spiralling inflation over the two years through 2023-24, issuers saw their revenue skyrocket. Although interest rate cuts occurred over 2024-25, the average rate issuers charged borrowers continued to climb, reflecting the rising number of defaults, and issuers seeking to maintain profitability after being forced to raise provisions to cover losses. Interest rates will continue to drop in 2025-26, but this will make borrowing more affordable and reduce the likelihood of defaults, supporting lending activity and aiding revenue growth during the year. The likely decline in defaults will also allow issuers to reduce provisions, lifting the average industry profit margin to 5.9% in 2025-26. Credit card issuance revenue is forecast to expand at a compound annual rate of 4.1% over the five years through 2030-31 to reach £19.3 billion. Demand for credit cards from younger demographics is set to pick up in the coming years, with TransUnion finding more Gen Z consumers getting credit cards in 2023 compared to Millennials a decade earlier, positioning the industry for solid growth. The intensifying threat of buy-now-pay-later platforms will also cool as the FCA clamps down on the industry, introducing new regulations that increase transparency and checks to ensure borrowers can repay their debt. Issuers will also seek to capitalise on the growing market of environmentally conscious consumers, using recycled plastics and biodegradable alternatives for credit cards. This will give smaller issuers a healthy source of competition to compete with more established companies, weighing on market share concentration.

The economy was seen by 52 percent of people in the UK as one of the top three issues facing the country in July 2025. The ongoing cost of living crisis afflicting the UK, driven by high inflation, is still one of the main concerns of Britons. Immigration has generally been the second most important issue since the middle of 2024, just ahead of health, which was seen as the third-biggest issue in the most recent month. Labour's popularity continues to sink in 2025 Despite winning the 2024 general election with a strong majority, the new Labour government has had its share of struggles since coming to power. Shortly after taking office, the approval rating for Labour stood at -2 percent, but this fell throughout the second half of 2024, and by January 2025 had sunk to a new low of -47 percent. Although this was still higher than the previous government's last approval rating of -56 percent, it is nevertheless a severe review from the electorate. Among several decisions from the government, arguably the least popular was the government withdrawing winter fuel payments. This state benefit, previously paid to all pensioners, is now only paid to those on low incomes, with millions of pensioners not receiving this payment in winter 2024. Sunak's pledges fail to prevent defeat in 2024 With an election on the horizon, and the Labour Party consistently ahead in the polls, addressing voter concerns directly was one of the best chances the Conservatives had of staying in power in 2023. At the start of that year, Rishi Sunak attempted to do this by setting out his five pledges for the next twelve months; halve inflation, grow the economy, reduce national debt, cut NHS waiting times, and stop small boats. A year later, Sunak had at best only partial success in these aims. Although the inflation rate fell, economic growth was weak and even declined in the last two quarters of 2023, although it did return to growth in early 2024. National debt was only expected to fall in the mid to late 2020s, while the trend of increasing NHS waiting times did not reverse. Small boat crossings were down from 2022, but still higher than in 2021 or 2020. .

Over the five years through 2025-26, the Juice, Mineral Water and Soft Drink Wholesaling industry’s revenue is forecast to expand at a compound annual rate of 1.8% to £5.2 billion. Wholesalers’ revenue heavily depends on sales to supermarkets, grocers and convenience stores. Low consumer confidence due to high inflation and high interest rates in 2022-23 dampened sales from key markets. Parallel to this, higher input costs for upstream manufacturers due to rising prices of commodities like sugar led to higher drink prices for wholesalers. However, digitalisation has seen wholesalers save on operational costs, helping to maintain positive profit margins, while consolidation and expansion among wholesalers have expanded customer reach, driving sales and stabilising revenue. Due to shifts in consumer preferences driven by increasing health consciousness and environmental awareness, the industry has witnessed enhanced product innovation and the growth of niche markets. Regulatory changes, including the Soft Drinks Industry Levy, have encouraged these trends, spurring the production of beverages with low or no sugar content. In line with wellness trends, lactose-free and functional drinks are also rising in popularity. Sales have risen as wholesalers have adapted by expanding their drinks portfolios to include healthier alternatives. Revenue is expected to climb by 1.6% in 2025-26. As the cost-of-living crisis and inflationary pressure subsides, demand is likely to inch upward, particularly from hospitality businesses like pubs and restaurants. Expanding automation in the wholesale industry will continue to push down operational costs by enhancing processing efficiency and broadening distribution systems, ultimately boosting profitability. Yet, digitalisation presents a challenge for the industry as it makes it easier for customers to bypass wholesalers. Additionally, wholesalers are likely to face increasing pricing pressures from supermarkets and own-label brands. Over the five years through 2030-31, revenue is forecast to grow at a compound annual rate of 1.3% to reach £5.5 billion.

From April 2025 onwards, the UK's main national minimum wage category, the national living wage, will rise to ***** pounds per hour, up from ***** pounds per hour in the previous financial year. This amount will apply to workers aged 21 and over, compared with 2022 and 2023 when it was only for workers aged 23 and over, and for those aged 25 and over between 2016 and 2021. The main minimum wage from 2010 to 2015 was the 21+ rate, and 22+ rate between 1999 and 2009. Evolution of the minimum wage Since its introduction in 1999, the minimum wage has had various rate categories, usually based on age. For the first five years, there were two categories, one for workers 18 to 21, and another for workers aged 22 and over. In 2004, a minimum wage for under 18s was introduced, and between 2010 and 2015 there were three rates based on age, and one for apprenticeships. Another age based-rate was added in 2016, but from 2024 onwards, the model will revert to four rate categories overall. In addition to the legal minimum wage, there is also a voluntary real living wage, which for 2024/25 is **** pounds per hour, rising to ***** pounds per hour for workers in London. Wages continue to outpace inflation in 2024 Since July 2023, wages have grown faster than inflation in the UK with December 2024 seeing regular weekly earnings grow by *** percent, compared with the CPI inflation rate of *** percent that month. For almost two years between November 2021 and June 2023, wage growth struggled to keep up with inflation, with the biggest gap occurring in October 2022 when inflation peaked at **** percent. The fall in real earnings in one of the most important factors in the UK's ongoing cost of living crisis. At the height of the crisis, around ** percent of UK households were reporting a monthly increase in their cost of living, with this falling to ** percent by March 2024.

Delicatessens’ revenue is expected to contract at a compound annual rate of 1.5% over the five years through 2025-26 to £1 billion. Inflationary pressures and the energy crisis have disrupted consumer spending habits in recent years, with households prioritising essential purchases during the cost-of-living crisis. Brexit-related complications, including border checks and increased red tape, led many EU exporters to cease operations, hitting delis reliant on imports of niche products. This drove up delis’ purchase costs, eating into profitability, which was further dented by a climbing National Living Wage. However, revenue has been supported by consistent demand from higher-income consumers, who were less affected by economic fluctuations. Consumers' preference for quality over quantity supports the sale of premium deli offerings. Revenue has been bolstered by increased consumer awareness of ultra-processed and unhealthy foods, driving demand for quality options. This shift has supported sales of both meat and meat alternatives as consumers prioritise high-quality choices. However, dipping consumer confidence in early 2025-26 threatens to weigh on recovering retail spending. At the same time, the industry faces threats from supermarkets expanding their deli substitutes and quality offerings. In response, delis are focusing on unique, artisanal products to keep customers’ attention. Revenue is projected to climb by 1.5% in 2025-26, primarily driven by easing economic pressures, growing demand from eco and health-conscious consumers and a continued preference for quality over quantity. Revenue is forecast to swell at a compound annual rate of 2.6% over the five years through 2030-31 to £1.2 billion. Consumer spending is projected to recover, especially in middle- and low-income markets, benefitting delis’ sales. However, recovery could be marred by increasing economic uncertainty. Tariffs threaten to disrupt global supply chains, potentially raising purchase costs for delis. As a result, delis may pivot to locally sourced produce to reduce their reliance on trade while capitalising on the growing demand for environmentally friendly products. Delis will continue to leverage their high-quality, healthy offerings to capture demand from increasingly health-conscious consumers. Online trends will continue to spur pockets of demand for niche offerings, ensuring delis must stay on top of trends to maximise sales. However, supermarkets will remain a threat as they continue to expand their premium and deli offerings. In response, delis may double down on their value-added offerings, including excellent customer service, niche products and enhanced store layouts, to wrestle back customers and ensure long-term revenue growth.

The Consumer Price Index of the United Kingdom was 138.5 in the second quarter of 2025, indicating that consumer prices have increased by 38.5 percent when compared with the first quarter of 2015. As of June 2025, the inflation rate for the CPI was 3.6 percent, an uptick from March, when prices were rising by 2.6 percent. A long period of elevated inflation between 2021 and 2023 peaked in October 2022 and saw prices increase by over 20 percent in just three years. Uptick in inflation expected in 2025 In late 2024, the UK's main economic forecaster, the Office for Budget Responsibility, predicted that the annual inflation rate for 2025 would average out at around 2.6 percent. In March 2025, however, the OBR revised this figure upward, with annual inflation now expected to be 3.2 percent. This uptick in inflation is predicted to peak in the third quarter of the year at 3.7 percent before falling to two percent by the second quarter of 2026. Although this period of higher inflation is predicted to be far less severe than in 2022, it will no doubt put further pressure on households already struggling with their cost of living. Cost of living woes continue The share of UK households reporting that their cost of living was increasing has been steadily rising since Summer 2024. At that time, less than half of UK households reported rising costs, down from 91 percent two years earlier. As of March 2025, however, 59 percent of households said their costs were rising, the highest figure since 2023. Of these households, 93 percent reported that their food shop was increasing, with three quarters of them reporting higher energy costs. With higher inflation predicted in 2025, the pressure on UK households will likely continue, although a crisis on the scale of 2021-2023 will hopefully be avoided.

The economy of the United Kingdom grew by 0.4 percent in June 2025, after shrinking by 0.1 percent in May 2025. As of the most recent month, the UK economy is around 4.9 percent larger than it was in February 2020, just before the start of COVID-19 lockdowns. After a record 19.6 percent decline in GDP in April 2020, the UK economy quickly returned to growth in the following months, and grew through most of 2021. Cost of living crisis lingers into 2025 As of December 2024, just over half of people in the UK reported that their cost of living was higher than it was in the previous month. Although this is a decline from the peak of the crisis in 2022 when over 90 percent of people reported a higher cost of living, households are evidently still under severe pressure. While wage growth has outpaced inflation since July 2023, overall consumer prices were 20 percent higher in late 2024 than they were in late 2021. For food and energy, which lower income households spend more on, late 2024 prices were almost 30 percent higher when compared with late 2021. According to recent estimates, living standards, as measured by changes in disposable income fell by 2.1 percent in 2022/23, but did start to grow again in 2023/24. Late 2023 recession followed by growth in 2024 In December 2023, the UK economy was approximately the same size as it was a year earlier, and struggled to achieve modest growth throughout that year. Going into 2023, a surge in energy costs, as well as high interest rates, created an unfavorable environment for UK consumers and businesses. The inflationary pressures that drove these problems did start to subside, however, with inflation falling to 3.9 percent in November 2023, down from a peak of 11.1 percent in October 2022. Although relatively strong economic growth occurred in the first half of 2024, with GDP growing by 0.7 percent, and 0.4 percent in the first two quarters of the year, zero growth was reported in the third quarter of the year. Long-term issues, such as low business investment, weak productivity growth, and regional inequality, will likely continue to hamper the economy going forward.

In June 2025, 26 percent of households in Great Britain reported that they could not afford an unexpected expense of 850 British pounds. In the same month, approximately 59 percent of people reported rising living costs relative to the previous month.

Over the five years through 2024-25, industry revenue is expected to contract at a compound annual rate of 3.4%. Catering services’ revenue has faced great turmoil due to staffing shortages, high inflation and the cost-of-living crisis. Inflationary pressures have limited the amount individuals and businesses spend on their events, including catering, significantly weighing on industry performance, especially in 2023-24. Rising business costs due to inflation and wage pressures have created a harsh environment for catering businesses, causing many to consolidate or close down, as passing prices on to consumers with tightening incomes hasn’t been an option. While inflationary pressures have supported revenue growth for some catering companies that pass the price increases onto consumers, others are experiencing reduced income opportunities as consumers and businesses cut back on non-essential spending amid low confidence. However, consumers' growing health and sustainability awareness is resulting in new caterers entering the industry and existing caterers offering premium-priced organic and meat-free catering options, supporting their growth and innovation. Alongside inflationary pressures, hiked wage costs have pushed up operating costs for caterers, constraining profit growth. Catering service providers mostly hire labour on zero- or part-time contracts to mitigate rising labour costs driven by industry-wide labour shortages. In 2024-25, industry revenue is expected to grow by 1.5%, reaching just under £1.4 billion and profit is anticipated to reach 7.5%. Industry revenue is expected to climb at a compound annual rate of 3.2% over the five years through 2029-30 to £1.6 billion. Labour shortages and rising wages remain key points of concern for the industry, with the National Living Wage set to increase in April 2025. However, the Bank of England cutting interest rates and predicting the inflation rate to fall to 2% in the second half of 2025 will boost business and consumer confidence, encouraging spending on catering services in 2025-26 and beyond. As economic conditions improve, rises in disposable income will also drive demand for catering services. A growing number of private equity companies, will likely invest in catering services, through acquiring smaller competitors, due to high growth potential. As health and sustainability awareness grows, companies will expand their product line to capture the growing market.

The Retail Price Index (RPI) is one of the main measures of inflation used to calculate the change in the price of goods and services within the British economy. In the second quarter of 2025 the index value was 403.2, indicating that the price for a fixed basket of goods had increased by almost more than 300 percent since 1987. The RPI inflation rate for June 2025 was 4.4 percent, up from 3.2 percent in March 2025 Inflation and UK living standards For UK consumers, high inflation is one of the main drivers of the ongoing cost of living crisis. With wages struggling to keep up with the pace of inflation for a long period between 2021 and 2023, UK households saw their living standards fall significantly. In 2022/23, real household disposable income in the UK is estimated to have fallen by 2.1 percent, which was the biggest fall in living standards since 1956. While there have been some signals that the crisis eased somewhat in 2024, such as falling energy and food inflation, an increasing share of UK households have reported increasing living costs since Summer 2024. Additional inflation indicators Aside from the Retail Price Index, the UK also produces other inflation indices such as the Consumer Price Index (CPI) and the Consumer Price Index including owner occupiers' housing costs (CPIH). While these particular indices measure consumer price increases slightly differently, they both provide an overall picture of rising prices. More specific inflation rates, such as by sector, are also produced, while other indices omit certain items, such as core inflation, which excludes food and energy inflation, to provide a more stable measure of inflation.