The UK inflation rate was 3.8 percent in September 2025, unchanged from the previous two months, 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 education sector, at 7.5 percent, with prices increasing at the slowest rate in the clothing and footwear sector. 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.

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

In 2025, the average annual inflation rate for the United Kingdom is expected to 3.5 percent, with the average rate for 2026 predicted to fall to 2.5 percent. Inflation in the UK increased at a faster rate than expected, with the rate revised upwards from an earlier prediction of 3.2 percent. Like many countries, 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 the recent uptick in 2025, the inflation rate is expected to fall to 2.5 percent in 2026, and to 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.

In 2024, the average inflation rate in the United Kingdom stood at 2.53 percent. Between 1980 and 2024, the figure dropped by 14.32 percentage points, though the decline followed an uneven course rather than a steady trajectory. The inflation is forecast to decline by 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.

View monthly updates and historical trends for UK Inflation Rate. from United Kingdom. Source: Office for National Statistics. Track economic data with YC…

Cost of food in the United Kingdom increased 4.90 percent in October 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.

Introduction This note summarises trends in pay in London and the UK since 2010 and compares them to inflation trends. The focus is on median gross weekly earnings for all employees (full- and part-time) working in London. The counterfactual analysis is based on annual pay estimates. ### Notes on the data * The employee pay estimates in this note do not cover self-employed jobs and come from a survey of UK businesses. There are, moreover, several discontinuities in the ONS ASHE series (e.g. in 2004, 2006, 2011 and 2021). The growth rates calculated over these periods are illustrative, not precise figures. * During the pandemic earnings estimates were affected by compositional changes and the furlough scheme, making interpretation more difficult. Data collection disruption and lower response rates also mean that estimates for 2020 and 2021 are subject to greater uncertainty. * Real earnings (earnings adjusted for inflation) have been calculated by adjusting nominal (unadjusted) earnings using the Consumer Prices Index including owner occupiers’ housing costs (CPIH). The CPIH is the most comprehensive measure of inflation in the UK.

The benchmark interest rate in the United Kingdom was last recorded at 4 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The inflation rate for the Retail Price Index (RPI) in the United Kingdom was 4.3 percent in October 2025, down from 4.5 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.

Monthly indexes and percentage changes for major components, selected sub-groups and special aggregates of the Consumer Price Index (CPI), not seasonally adjusted, for Canada, provinces, Whitehorse and Yellowknife. Data are presented for the corresponding month of the previous year, the previous month and the current month. The base year for the index is 2002=100.

Summary of UK House Price Index (HPI) price statistics covering England, Scotland, Wales and Northern Ireland. Full UK HPI data are available on GOV.UK.

The monthly house price index in London has increased since 2015, albeit with fluctuation. In August 2025, the index reached 99.1, which is a slight decrease from the same month in 2024. Nevertheless, prices widely varied in different London boroughs, with Kensington and Chelsea being the priciest boroughs for an apartment purchase.

In September 2023, Learning and Work was commissioned by the GLA to conduct research into the impact of the rising cost of living on London’s adult education landscape. GLA data shows that in 2023, 17% of Londoners were ‘struggling financially’, and another 30% were ‘just about managing’. Increased inflation also impacted the cost of doing business for London’s skills providers and Further Education (FE) workforce. This report and the summary report are based upon a survey, depth interviews and focus groups with learners, providers, and third sector organisations that provide and campaign for people on low incomes. The fieldwork took place between November 2023 and March 2024. The research provides an account of the impact of the rising cost of living on London’s FE sector.

Housing Index in the United Kingdom increased to 517.10 points in October from 514.20 points in September of 2025. This dataset provides - United Kingdom House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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

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

In the three months to August 2025, average weekly earnings in the United Kingdom grew by 4.7 percent. In the same month, the inflation rate for the Consumer Price Index was 3.8 percent, indicating that wages were rising faster than prices that month. Average salaries in the UK In 2024, the average salary for full-time workers in the UK was 37,430 British pounds a year, up from 34,963 in the previous year. In London, the average annual salary was far higher than the rest of the country, at 47,455 pounds per year, compared with just 32,960 in North East England. There also still exists a noticeable gender pay gap in the UK, which was seven percent for full-time workers in 2024, down from 7.5 percent in 2023. Lastly, the monthly earnings of the top one percent in the UK was 15,887 pounds as of November 2024, far higher than even that of the average for the top five percent, who earned 7,641 pounds per month, while pay for the lowest 10 percent of earners was just 805 pounds per month. Waves of industrial action in the UK One of the main consequences of high inflation and low wage growth throughout 2022 and 2023 was an increase in industrial action in the UK. In December 2022, for example, there were approximately 830,000 working days lost due to labor disputes. Throughout this month, workers across various industry sectors were involved in industrial disputes, such as nurses, train drivers, and driving instructors. Many of the workers who took part in strikes were part of the UK's public sector, which saw far weaker wage growth than that of the private sector throughout 2022. Widespread industrial action continued into 2023, with approximately 303,000 workers involved in industrial disputes in March 2023. There was far less industrial action by 2024, however, due to settlements in many of the disputes, although some are ongoing as of 2025.

The consumer price index for hotels, cafés, and restaurants in the United Kingdom was 151 in the third quarter of 2025, indicating that prices in this sector have increased by 51 percent since 2015, compared with 38.5 percent for overall prices.

Over the five years through 2025-26, the Universities industry's revenue is expected to grow at a compound annual rate of 0.6% to £54.9 billion. The increase in tuition fees to £9,250 in 2017-18 has been an important driver of revenue growth. However, with tuition fees frozen until 2024-25, inflation, particularly in the two years through 2023-24, has meant their real value has plummeted. This has also put a strain on profit over the past five years. The cap on undergraduate student numbers in the UK was lifted in 2020-21, leading to a rise in student enrolments, which has helped prop up universities’ income.

Universities have struggled in the face of cuts to research funding levels from the government and the disruption caused by the pandemic. Teaching went online in the final term of 2019-20 and remained there for most of the 2020-21 academic year due to restrictions imposed following the COVID-19 outbreak, pushing down revenue. However, despite fears of a decline in demand, student applications for 2020-21 increased and higher education UCAS applications for 18-year-olds living in the UK for the 2025-26 academic year reached a record high. Universities are also benefitting from the UK rejoining Horizon Europe, the EU’s flagship research programme – they’ve been able to access funding since January 2024. However, there are significant concerns over declining international student numbers, as they currently prop up university finances and help subsidise domestic students' places. The introduction of the dependent ban in January 2024 on overseas students bringing family with them on their student visa for taught master's has seen applications from several countries fall. Revenue is still set to grow 1% in 2025-26 as tuition fee rises for the first time since 2017, from £9,250 to £9,535, which is propelling revenue rises despite poor enrolment figures.

Over the five years through 2030-31, university revenue is forecast to fall at a compound annual rate of 0.8% to reach £52.8 billion. Strong demand from domestic students will further support revenue growth; however, without further tuition fee rises, universities' real income is likely to suffer. The industry will need more funding intervention to prevent closures and budget cuts. Additionally, proposals by the government to make it harder for international students to settle in the UK will disincentivise international applicants, putting a strain on revenue.

Labour Costs in the United Kingdom increased to 110.60 points in the second quarter of 2025 from 109.20 points in the first quarter of 2025. This dataset provides the latest reported value for - United Kingdom Labour Costs - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.