UK inflation rate 2025

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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. When inflation peaked at 11.2 percent in October 2022, for example, core inflation stood at just 6.5 percent. 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, the CPI inflation rate stood at 2.5 percent, while the CPIH rate was 3.5 percent. 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.

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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. From 2021 onwards, prices in the UK rose rapidly, with the RPI inflation rate peaking at 14.2 percent in October 2022. The inflation rate for the Retail Price Index (RPI) in the United Kingdom was 3.8 percent in November 2025, down from 4.3 percent in the previous month.

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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 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. 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. For UK consumers, high inflation is one of the main drivers of the ongoing cost of living crisis. The RPI inflation rate in September 2025 was 4.5 percent, up from 3.6 percent at the start of 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.

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Inflation rate for the Consumer Price Index (CPI) in the United Kingdom from January 2015 to November 2025

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The UK's high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic. 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 as of late 2025. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022.

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