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. The UK has only recently recovered from a period of elevated inflation, which saw the CPI rate reach 7.3 percent in 2023, and 9.1 percent in 2022. Before 2022, the inflation rate was at its highest in 2011 when it reached 4.5 percent, and was lowest in 2015 when an annual inflation rate of zero percent was recorded. Inflation has been surging in the UK since late 2021, and reached a 41-year-high of 11.1 percent in October 2022. Since that recent peak, inflation has gradually subsided, and was four percent in January 2024. Inflation down but not out in 2024 Although there are some positive signals regarding UK inflation decelerating throughout 2023, prices are still rising at quite a fast rate, especially in certain sectors. Food inflation, for example, only fell below double-figures in November 2023, and was still rising by 6.9 percent in January 2024. As of that month, however, alcohol and tobacco prices were rising faster than any other sector, with an inflation rate of 12.4 percent. Additionally, underlying core inflation, which measures prices rises without food and energy, is slightly above the headline inflation rate, and was 5.1 percent as of the most recent month. With some aspects of inflation seemingly becoming embedded in the UK economy, this will likely prolong the current Cost of Living Crisis engulfing UK households. Inflation crisis across in the world in 2022 The UK has not been 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.

The UK inflation rate was three percent in January 2025, up from 2.5 percent in the previous month, and the fastest rate of inflation since March 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.

The Consumer Price Index of the United Kingdom was 135.2 as of the fourth quarter of 2024, indicating that consumer prices have increased by 35.2 percent when compared with the first quarter of 2015. As of December 2024, the inflation rate for the CPI was 2.5 percent, a slight fall from the previous month.

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

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 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.

In January 2025, the UK inflation rate for goods was one percent and five percent for services. Prices for goods accelerated significantly, sharply between in 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 December 2024, the UK's inflation rate was 2.5 percent, down from 2.6 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.

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.

Core consumer prices in the United Kingdom increased 3.50 percent in February 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.

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.

In July 2021, the CPIH index in the United Kingdom reached 111.4, indicating a large increase in prices since November 2017. Between November 2017 and September 2020, the CPIH has been steadily increasing, peaking in the most recent period recorded.

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.

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

In February 2025, the UK inflation rate was 2.8 percent, with prices rising fastest in the education sector, which had an inflation rate of 7.5 percent. In this month, prices were rising in all sectors, with the exception of clothing and footwear. The inflation rate for services as a whole was five percent, while for goods, prices grew by 0.8 percent. 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 two percent. Going into 2025, recent forecasts suggest that over the course of the year, inflation will average out at 2.6 percent, with the two 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.

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.

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.