In October 2024, the inflation rate for food prices in the United Kingdom was measured at 1.9 percent. A period of continuous deflation between March 2015 and January 2017 preceded a return to a sustained rise of the cost of food from February 2017 onwards. While food prices were deflating between September 2020 and July 2021, they started increasing rapidly from August 2021 to March 2023. The inflation rate started to decline from April 2023. Inflation rate and consumer price indexInflation is commonly measured via the consumer price index, which illustrates changes to prices paid by consumers for a representative basket of goods and services. An annualized percentage change in the price index constitutes a measure of inflation. In order to maintain an inflation rate at a stable level, to enable the general public and businesses to plan their spending, the Government set a two percent inflation target for the Bank of England. The discounter boom The increase in food prices in the United Kingdom has shifted shopping behaviours amongst consumers. Value is now key and shoppers are changing their retailer loyalties. Aldi, the German discount supermarket retailer, overtook Morrisons as Great Britain's fourth largest supermarket in September of 2022. Aldi's market share reached double digits for the first time in April 2023. It is yet to be seen if Lidl, Aldi's discounter competitor, can also continue to rise up in the ranks and eventually take over Morrisons as the fifth leading food retailer.

In February 2025, the Consumer Price Index including owner occupiers' housing costs (CPIH) inflation rate of the United Kingdom was 3.7 percent, unchanged from 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 9.6 percent in October 2022, CPIH inflation declined throughout 2023 and into 2024, falling to 2.6 percent by September of that year, before increasing again in recent months. 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 91 percent in August 2022, to 45 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 20 percent in the last three years, rising to almost 30 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 3.12 million people using food banks in 2023/24. Other measure 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 fare rises. Other metrics include the core inflation rate, which measures prices 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 6.1 percent, with costs falling in the transport and furniture sectors.

Inflation Rate in the United Kingdom decreased to 2.80 percent in February from 3 percent in January of 2025. This dataset provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Representative items within the Consumer Prices Index including owner occupiers' housing costs, Consumer Prices Index and Retail Prices Index for the basket of goods and services.

Cost of food in the United Kingdom increased 3.30 percent in February of 2025 over the same month in the previous year. This dataset provides the latest reported value for - United Kingdom Food Inflation - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Measures of monthly UK inflation data including CPIH, CPI and RPI. These tables complement the consumer price inflation time series dataset.

The average inflation rate in the United Kingdom was forecast to continuously decrease between 2024 and 2029 by in total 0.6 percentage points. The inflation is estimated to amount to two percent in 2029. Following the definitions provided by the International Monetary Fund, this indicator measures inflation based upon the year on year change in the average consumer price index. The latter expresses a country's average level of prices based on a typical basket of consumer goods and services. Depicted here is the year-on-year change in said index measure, expressed in percent.Find more statistics on other topics about the United Kingdom with key insights such as the total population, the national debt, and the share in the global GDP adjusted for purchasing power parity.

When converted to the value of one British pound Sterling in 2019, goods and services that cost one pound in 1210 would cost just over two thousand pounds in 2019, meaning that one pound in 1210 was worth approximately two thousand times more than it is today. This data can be used to calculate how much goods and services from the years shown would cost today, by multiplying the price from then by the number shown in the graph. For example, an item that cost 50 pounds in 1970 would theoretically cost 780 pounds in 2019's money.

The inflation rate for the Retail Price Index (RPI) in the United Kingdom was 3.4 percent in February 2025, down from 3.6 percent in the previous month. From 2021 onwards, prices in the UK rose rapidly, with the RPI inflation rate peaking at 14.2 percent in October 2022. Although inflation fell in subsequent months, it wasn't until July 2023 that inflation fell below double digits, and as of late 2024, the RPI rate was still above three percent. The CPI and CPIH While the retail price index is still a popular method of calculating inflation, the consumer price index (CPI) is the current main measurement of inflation in the UK. There is also an additional price index, which includes some extra housing costs, known as the Consumer Price Index including homer occupiers' costs (CPIH) index, which is seen by the UK's Office of National Statistics as the official inflation rate. As of December 2024, the CPI inflation rate stood at 2.5 percent, while the CPIH rate was 3.5 percent. Core inflation down in 2024 Another way of measuring inflation is to strip out the volatility of energy and food prices and look at the underlying core inflation rate. As of December 2024, this was 3.2 percent, slightly higher than the overall CPI rate, but more aligned with the overall figure than it was in 2022 and 2023. When inflation peaked at 11.2 percent in October 2022, for example, core inflation stood at just 6.5 percent. After energy prices in 2023 fell relative to 2022, the overall inflation rate in the UK declined quite rapidly, with core inflation overtaking the overall rate in July 2023. During the most recent period of high inflation, core inflation peaked at 7.1 percent in May 2023, and while taking longer to fall than the overall figure, has generally been declining since then.

Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used.

Energy Inflation in the United Kingdom decreased to -6.60 percent in January from -6 percent in December of 2024. This dataset includes a chart with historical data for the United Kingdom Energy Inflation.

Services producer price inflation (SPPI) records showing higher, lower and equal to quarterly service Producer Price Index movements for selected UK services sectors.

Inflation is an important measure of any country’s economy, and the Retail Price Index (RPI) is one of the most widely used indicators in the United Kingdom, with the rate expected to be 2.9 percent in 2024, compared with 9.7 percent in 2023. This followed 2022, when inflation reached a rate of 11.6 percent, by far the highest annual rate during this provided time period. CPI vs RPI Although the Retail Price Index is a commonly utilized inflation indicator, the UK also uses a newer method of calculating inflation, the Consumer Price Index. The CPI, along with the CPIH (Consumer Price Index including owner occupiers' housing costs) are usually preferred by the UK government, but the RPI is still used in certain instances. Increases in rail fares for example, are calculated using the RPI, while increases in pension payments are calculated using CPI, when this is used as the uprating factor. The use of one inflation measure over the other can therefore have a significant impact on people’s lives in the UK. High inflation gradually subsiding in 2024 Like the Retail Price Index, the Consumer Price Index inflation rate also reached a recent peak in October 2022. In that month, prices were rising by 11.1 percent and did not fall below double figures until April 2023. This fall was largely due to slower price increases in key sectors such as energy, which drove a significant amount of the 2022 wave of inflation. Inflation nevertheless remains elevated, fueled not only by high food inflation, but also by underlying core inflation. As of January 2024, the overall CPI inflation rate had fallen to four percent, and is expected to fall further throughout the year.

Rent Inflation in the United Kingdom decreased to 7.40 percent in February from 7.80 percent in January of 2025. This dataset includes a chart with historical data for the United Kingdom Rent Inflation.

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 2.1 percent in the second quarter of 2024. From late 2024 onwards, there is expected to be a slight bump in inflation, with the rate increasing to 2.7 percent by the second quarter of 2025, with this declining to 2.1 percent by the end 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 have finally started to grow in real terms, the economic fallout from the crisis may be crucial in deciding who governs the UK at the next election. Economy the main issue for UK voters in 2024 Although there is currently no set date for the next UK general election, it is generally expected to take place in the second half of 2024. Recent polls put the ruling Conservative party in a precarious position, trailing their rivals the Labour Party by 30 points in May 2024. Crucially for the Labour Party, they are seen as the best party at handling the economy, which has consistently been the main issue for UK voters for several months. The UK economy's return to growth in the first quarter of 2024, along with falling inflation, may not be enough to change this perception by the time voters go to the polls.

Construction Output Price Indices (OPIs) from January 2014 to December 2024, UK. Summary.

Consumer Price Index CPI in the United Kingdom increased to 136 points in February from 135.40 points in January of 2025. This dataset provides the latest reported value for - United Kingdom Consumer Price Index (CPI) - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Quarterly estimates monitoring the changes in prices charged for services provided to UK-based customers for a range of industries.

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 fourth quarter of 2024 the index value was 391.2, indicating that the price for a fixed basket of goods had increased by more than 391 percent since 1987. The RPI inflation rate for December 2024 was 3.5 percent, down from 3.6 percent in the previous month. 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.