UK Inflation Rate 2026
3.4%
All Items
2.1%
Goods
4.3%
Services
3.3%
Excl. Energy, Food & Alcohol
CPI Categories
Click a category to see the breakdown and historical chart
| # | Category | 12m Rate | CPI Weight |
|---|---|---|---|
| 01 | Food and non-alcoholic beverages | 3.7% | 8.7% |
| 02 | Alcoholic beverages and tobacco | 3.3% | 2.9% |
| 03 | Clothing and footwear | -0.8% | 4.5% |
| 04 | Housing, water, electricity, gas and other fuels (Inc OOH) | 4.3% | 31.4% |
| 05 | Furniture, household equipment and maintenance | -0.4% | 4.3% |
| 06 | Health | 3.1% | 2.1% |
| 07 | Transport | 4.7% | 11.1% |
| 08 | Communication | 4.1% | 1.9% |
| 09 | Recreation and culture | 2.8% | 12.0% |
| 10 | Education | 5.1% | 2.7% |
| 11 | Restaurants and hotels | 4% | 11.0% |
| 12 | Miscellaneous goods and services | 2.5% | 7.5% |
Other services
Sub-categories — click to drill further
| # | Category | 12m Rate | CPI Weight |
|---|---|---|---|
| 07.2.4 | Other services | 11.8% | 1.4% |
Value after Inflation over time
Starting at £1 in 1988
Everything you need to know about UK Inflation
1.What exactly is inflation?
Inflation is basically the increase in the prices of goods and services over time. You might have noticed that your groceries are more expensive than they used to be, or that your rent has gone up. That's inflation. It's not a new phenomenon, either. Inflation has been around for as long as people have been buying and selling things.
2.Why does inflation happen?
There are a lot of factors that contribute to inflation, but one of the main ones is the supply and demand of money. When there's too much money floating around, prices tend to go up. This can happen for a variety of reasons, such as when the government prints too much money or when interest rates are too low. On the other hand, when there's not enough money in circulation, prices tend to go down.
3.What is CPI?
CPI stands for Consumer Price Index, which is a measure of inflation calculated by tracking the prices of a basket of goods and services that the average person might buy — such as food, housing, and transportation. While the CPI is a useful tool, it has limitations: it doesn't account for changes in quality or quantity of goods, and the basket may not represent everyone's spending. Despite this, it remains a critical tool for policymakers when setting interest rates and government spending.