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.

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.

Inflation Rate in the United Kingdom decreased to 3.40 percent in May from 3.50 percent in April of 2025. This dataset provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2020 the Consumer Price Index (CPI) rate of the United Kingdom is expected to be between 1.4 percent and 1.9 percent, according to forecasts from three different institutions, the Office for Budget Responsibility, the International Monetary Fund, and the The National Institute of Economic and Social Research. CPI measures the rate of change to market basket price levels of consumer goods and services purchased by households.

Core consumer prices in the United Kingdom increased 3.50 percent in May of 2025 over the same month in the previous year. This dataset provides - United Kingdom Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The United Kingdom: Inflation forecast: The latest value from 2030 is 2 percent, unchanged from 2 percent in 2029. In comparison, the world average is 3.65 percent, based on data from 182 countries. Historically, the average for the United Kingdom from 1980 to 2030 is 3.46 percent. The minimum value, 0.2 percent, was reached in 2015 while the maximum of 15.16 percent was recorded in 1980.

In 2024, the average inflation rate in the United Kingdom was approximately 2.53 percent. Between 1980 and 2024, the figure dropped by around 14.32 percentage points, though the decline followed an uneven course rather than a steady trajectory. The inflation is forecast to decline by about 0.53 percentage points from 2024 to 2030, fluctuating as it trends downward.This indicator measures inflation based upon the year-on-year change in the average consumer price index, expressed in percent. The latter expresses a country's average level of prices based on a typical basket of consumer goods and services.

Cost of food in the United Kingdom increased 4.40 percent in May 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.

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 4.1 percent in 2025, compared with 3.6 percent in 2024. This followed 2022, when RPI 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 falls to more typical levels by 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 February 2025, the overall CPI inflation rate was 2.8 percent, although an uptick in inflation is expected later in the year, with a rate of 3.7 percent forecast for the third quarter of the year.

Inflation Expectations in the United Kingdom decreased to 3.90 percent in June from 4 percent in May of 2025. This dataset provides - United Kingdom Inflation Expectations- actual values, historical data, forecast, chart, statistics, economic calendar and news.

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 July of 2025.

The Consumer Price Index in the United Kingdom increased 0.20 percent in May of 2025 over the previous month. This dataset provides - United Kingdom Inflation Rate MoM - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2025, the UK economy is expected to grow by just one percent, according to the economic and fiscal outlook from March 2025. GDP growth has been downgraded from two percent when compared with the previous forecast from October 2024. The inflation rate is expected to average out at 3.2 percent, and the unemployment rate at 4.5 percent. Inflation distress continues for UK consumers The expected increase in UK inflation for 2025 looks set to peak at 3.7 percent in the third quarter of the year, before falling to two percent by early 2026. Though this spike in prices will be far less serious than in 2022, when UK inflation reached a peak of 11.1 percent in October 2022, UK households are still suffering from the impact of the previous crisis. In March 2025, approximately 59 percent of UK households were dealing with rising living costs, relative to the previous month, mainly due to rising energy and food costs. Unemployment set to rise in 2025 Aside from rising prices and a slowing economy, the UK will also have to contend with rising unemployment in 2025. As with inflation, however, the rise in unemployment is expected to be relatively mild and short-lived, especially when compared with previous periods of high unemployment. Recently, the government has been more concerned about high levels of economic inactivity, especially among young people, with the number of 16- to 24-year-olds not in employment, education, or training approaching one million towards the end of 2024.

House price inflation in the UK is forecast to fluctuate from a -2.3 percent to 3.7 percent between 2023 and 2028. In 2024, house prices were forecast to fall by 2.3 percent, after soaring by close to 10 percent in 2022.

United Kingdom UK: Inflation:(GDP) Gross Domestic ProductDeflator: Linked Series data was reported at 1.964 % in 2017. This records a decrease from the previous number of 1.974 % for 2016. United Kingdom UK: Inflation:(GDP) Gross Domestic ProductDeflator: Linked Series data is updated yearly, averaging 2.031 % from Dec 1990 (Median) to 2017, with 28 observations. The data reached an all-time high of 10.808 % in 1995 and a record low of 0.456 % in 2015. United Kingdom UK: Inflation:(GDP) Gross Domestic ProductDeflator: Linked Series data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Inflation. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. This series has been linked to produce a consistent time series to counteract breaks in series over time due to changes in base years, source data and methodologies. Thus, it may not be comparable with other national accounts series in the database for historical years.; ; World Bank staff estimates based on World Bank national accounts data archives, OECD National Accounts, and the IMF WEO database.; ;

United Kingdom House Price: Qtr: UK: Adjusted for Inflation data was reported at 214,578.383 GBP in Jun 2018. This records an increase from the previous number of 211,792.212 GBP for Mar 2018. United Kingdom House Price: Qtr: UK: Adjusted for Inflation data is updated quarterly, averaging 60,170.285 GBP from Mar 1975 (Median) to Jun 2018, with 174 observations. The data reached an all-time high of 214,578.383 GBP in Jun 2018 and a record low of 10,387.877 GBP in Mar 1975. United Kingdom House Price: Qtr: UK: Adjusted for Inflation data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s UK – Table UK.P001: House Price: Nationwide.

In April 2025, the UK inflation rate was 3.5 percent, with prices rising fastest in the housing, water, electricity, gas and other fuels sector, which had an inflation rate of 7.8 percent. In this month, prices were rising in all sectors, except for in the clothing and footwear, and furniture sectors. UK inflation falls in 2024 After reaching a peak of 11.1 percent in October 2022, the CPI inflation rate in the UK gradually declined over several months, falling to a low of 1.7 percent by August 2024. An uptick in inflation has occurred since that month, however, and by the end of the year inflation was at 2.5 percent above the Bank of England's target rate of 2 percent. Going into 2025, recent forecasts suggest that over the course of the year, inflation will average out at 2.6 percent, with the 2 percent target not met on an annual basis until at least 2029. Roots of the inflation crisis This long period of high inflation that the UK and much of the world experienced had its roots in the post-pandemic economic recovery of 2021. During that year, as consumer demand returned, global supply chains struggled to return to full capacity, resulting in prices rising. With inflation already elevated going into 2022, Russia's invasion of Ukraine added even more inflationary pressures to the global economy. European markets which were heavily reliant on Russian oil and gas gradually phased out hydrocarbons from their economies. Food prices were also heavily impacted due to Ukraine's difficulty in exporting its agricultural products.

United Kingdom UK: Inflation:(GDP) Gross Domestic ProductDeflator data was reported at 1.964 % in 2017. This records a decrease from the previous number of 1.974 % for 2016. United Kingdom UK: Inflation:(GDP) Gross Domestic ProductDeflator data is updated yearly, averaging 4.055 % from Dec 1961 (Median) to 2017, with 57 observations. The data reached an all-time high of 25.778 % in 1975 and a record low of 0.456 % in 2015. United Kingdom UK: Inflation:(GDP) Gross Domestic ProductDeflator data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Inflation. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.; ; World Bank national accounts data, and OECD National Accounts data files.; Median;