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 inflation rate for the Retail Price Index in the United Kingdom in the fourth quarter of 2022 reached 13.9 percent, before falling in the subsequent quarters. The RPI rate in the fourth quarter of 2024 was 3.5 percent, with an uptick expected in RPI inflation expected in 2025, peaking at 4.6 percent in the third quarter of 2025.

Retail Price Index in the United Kingdom decreased to 3.40 percent in February from 3.60 percent in January of 2025. This dataset provides - United Kingdom Retail Price Index YoY- actual values, historical data, forecast, chart, statistics, economic calendar and news.

This statistic shows the predicted change in retail prices index (RPI) in the United Kingdom (UK) between 2017 and 2023. A slight and steady decline is forecasted to occur during the period from 2018 to 2023.

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.

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.

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

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.

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.

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.

United Kingdom UK: Retail Price Index: All Items data was reported at 117.665 2010=100 in 2016. This records an increase from the previous number of 115.663 2010=100 for 2015. United Kingdom UK: Retail Price Index: All Items data is updated yearly, averaging 36.329 2010=100 from Dec 1948 (Median) to 2016, with 69 observations. The data reached an all-time high of 117.665 2010=100 in 2016 and a record low of 3.801 2010=100 in 1948. United Kingdom UK: Retail Price Index: All Items data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s United Kingdom – Table UK.IMF.IFS: Consumer and Producer Price Index: Annual.

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.

United Kingdom Retail Price Index: Fuel and Light: Gas data was reported at 379.700 13Jan1987=100 in Oct 2018. This records an increase from the previous number of 372.200 13Jan1987=100 for Sep 2018. United Kingdom Retail Price Index: Fuel and Light: Gas data is updated monthly, averaging 126.350 13Jan1987=100 from Jan 1987 (Median) to Oct 2018, with 382 observations. The data reached an all-time high of 403.600 13Jan1987=100 in Dec 2013 and a record low of 95.500 13Jan1987=100 in Mar 1988. United Kingdom Retail Price Index: Fuel and Light: Gas data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s United Kingdom – Table UK.I011: Retail Price Index.

The Consumer Price Index in the United Kingdom increased 0.40 percent in February 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.

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.

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.

United Kingdom Retail Price Index: Tobacco: Cigarettes data was reported at 767.400 13Jan1987=100 in Jun 2018. This records an increase from the previous number of 765.900 13Jan1987=100 for May 2018. United Kingdom Retail Price Index: Tobacco: Cigarettes data is updated monthly, averaging 303.000 13Jan1987=100 from Jan 1987 (Median) to Jun 2018, with 378 observations. The data reached an all-time high of 767.400 13Jan1987=100 in Jun 2018 and a record low of 99.700 13Jan1987=100 in Aug 1987. United Kingdom Retail Price Index: Tobacco: Cigarettes data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s UK – Table UK.I011: Retail Price Index.

United Kingdom Retail Price Index: Personal Goods & Services: Personal Services data was reported at 525.500 13Jan1987=100 in Jun 2018. This records an increase from the previous number of 524.500 13Jan1987=100 for May 2018. United Kingdom Retail Price Index: Personal Goods & Services: Personal Services data is updated monthly, averaging 302.950 13Jan1987=100 from Jan 1987 (Median) to Jun 2018, with 378 observations. The data reached an all-time high of 525.500 13Jan1987=100 in Jun 2018 and a record low of 100.000 13Jan1987=100 in Jan 1987. United Kingdom Retail Price Index: Personal Goods & Services: Personal Services data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s UK – Table UK.I011: Retail Price Index.