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UK Inflation Falls to 3.0% in January
UK consumer price inflation eased to 3.0% in January 2026, down from 3.4% in December and in line with market expectations. This marks the lowest annual inflation rate since March 2025, primarily driven by softer increases in transport and food prices. Transport costs rose by 2.7% year-on-year, slowing from 4.0% in December, as fuel prices fell and air fare inflation moderated. Meanwhile, food and non-alcoholic beverage prices increased by 3.6%, down from 4.5% the previous month. Inflation also eased in housing and utilities (4.5% vs. 4.9%) and recreation and culture (2.6% vs. 2.7%). However, price growth in restaurants and hotels accelerated to 4.1%, up from 3.8%. Core inflation, which excludes more volatile components such as food and energy, declined to 3.1% in January, its lowest level since August 2021, suggesting underlying price pressures are gradually moderating. On a monthly basis, consumer prices fell by 0.5%, reversing a 0.4% increase recorded in December.
Published on 2026-02-18

UK Inflation Falls to 3.0% in January
UK consumer price inflation eased to 3.0% in January 2026, down from 3.4% in December and in line with market expectations. This marks the lowest annual inflation rate since March 2025, primarily driven by softer increases in transport and food prices. Transport costs rose by 2.7% year-on-year, slowing from 4.0% in December, as fuel prices fell and air fare inflation moderated. Meanwhile, food and non-alcoholic beverage prices increased by 3.6%, down from 4.5% the previous month. Inflation also eased in housing and utilities (4.5% vs. 4.9%) and recreation and culture (2.6% vs. 2.7%). However, price growth in restaurants and hotels accelerated to 4.1%, up from 3.8%. Core inflation, which excludes more volatile components such as food and energy, declined to 3.1% in January, its lowest level since August 2021, suggesting underlying price pressures are gradually moderating. On a monthly basis, consumer prices fell by 0.5%, reversing a 0.4% increase recorded in December.
Published on 2026-02-18

UK Inflation Ticks Higher in December
UK consumer price inflation rose to 3.4% in December 2025, up from November’s eight-month low of 3.2% and slightly above market expectations of 3.3%. This year-end acceleration, the first since July, could complicate the Bank of England’s efforts to guide inflation back toward its 2% target, though the rise is expected to be temporary thanks to government interventions. The increase was largely driven by higher prices for alcohol and tobacco, which jumped to 5.2% from 4.0% in November due to the timing of tobacco duty changes, and transport costs, which rose to 4.0% from 3.7% on the back of higher airfares. Additional upward pressure came from food and non-alcoholic beverages (4.5% vs. 4.2%). Services inflation, a key gauge of domestic price pressures for the BOE, edged up slightly to 4.5% from 4.4%, below expectations. Core inflation, which excludes volatile items like unprocessed food and energy, remained steady at 3.2%, marking its lowest level since December 2024.
Published on 2026-01-21

UK Inflation Ticks Higher in December
UK consumer price inflation rose to 3.4% in December 2025, up from November’s eight-month low of 3.2% and slightly above market expectations of 3.3%. The year-end acceleration in inflation may complicate the Bank of England’s efforts to steer price growth back toward its 2% target. The uptick was primarily driven by faster price increases in alcohol and tobacco (5.2% vs. 4.0% in November) and transport (4.0% vs. 3.7%). Additional upward pressure came from food and non-alcoholic beverages (4.5% vs. 4.2%), restaurants and hotels (3.8% vs. 3.5%), and miscellaneous goods and services (2.2% vs. 2.1%). These increases were partly offset by easing inflation in housing and utilities (4.9% vs. 5.1%) and recreation and culture (2.7% vs. 2.9%). Meanwhile, core inflation, which excludes volatile items such as unprocessed food and energy, remained unchanged at 3.2%, holding at its lowest level since December 2024.
Published on 2026-01-21

UK Inflation Ticks Higher in December
UK consumer price inflation rose to 3.4% in December 2025, up from November’s eight-month low of 3.2% and slightly above market expectations of 3.3%. The year-end acceleration in inflation, which may complicate the Bank of England’s efforts to steer price growth back toward its 2% target, was primarily driven by faster price increases in alcohol and tobacco (5.2% vs. 4.0% in November) and transport (4.0% vs. 3.7%). Additional upward pressure came from food and non-alcoholic beverages (4.5% vs. 4.2%), restaurants and hotels (3.8% vs. 3.5%), and miscellaneous goods and services (2.2% vs. 2.1%). These increases were partly offset by easing inflation in housing and utilities (4.9% vs. 5.1%) and recreation and culture (2.7% vs. 2.9%). Meanwhile, core inflation, which excludes volatile items such as unprocessed food and energy, remained unchanged at 3.2%, holding at its lowest level since December 2024.
Published on 2026-01-21

UK Inflation Ticks Higher in December
UK consumer price inflation rose to 3.4% in December 2025, up from November’s eight-month low of 3.2% and slightly above market expectations of 3.3%. The year-end acceleration in inflation, which may complicate the Bank of England’s efforts to steer price growth back toward its 2% target, was primarily driven by faster price increases in alcohol and tobacco (5.2% vs. 4.0% in November) and transport (4.0% vs. 3.7%). Services inflation, closely watched by the BOE as a measure of domestic price pressures, edged up to 4.5% from 4.4%, a smaller-than-expected increase. Additional upward pressure came from food and non-alcoholic beverages (4.5% vs. 4.2%), restaurants and hotels (3.8% vs. 3.5%), and miscellaneous goods and services (2.2% vs. 2.1%). Meanwhile, core inflation, which excludes volatile items such as unprocessed food and energy, remained unchanged at 3.2%, holding at its lowest level since December 2024.
Published on 2026-01-21

UK Inflation Ticks Higher in December
UK consumer price inflation rose to 3.4% in December 2025, up from November’s eight-month low of 3.2% and slightly above market expectations of 3.3%. The year-end acceleration in inflation, which may complicate the Bank of England’s efforts to steer price growth back toward its 2% target, was primarily driven by faster price increases in alcohol and tobacco (5.2% vs. 4.0% in November) and transport (4.0% vs. 3.7%). Additional upward pressure came from food and non-alcoholic beverages (4.5% vs. 4.2%), restaurants and hotels (3.8% vs. 3.5%), and miscellaneous goods and services (2.2% vs. 2.1%). Services inflation, closely watched by the BOE as a measure of domestic price pressures, edged up to 4.5% from 4.4%, a smaller-than-expected increase. Meanwhile, core inflation, which excludes volatile items such as unprocessed food and energy, remained unchanged at 3.2%, holding at its lowest level since December 2024.
Published on 2026-01-21

UK Inflation Ticks Higher in December
UK consumer price inflation rose to 3.4% in December 2025, up from November’s eight-month low of 3.2% and slightly above market expectations of 3.3%. This year-end acceleration, the first since July, could complicate the Bank of England’s efforts to guide inflation back toward its 2% target, though the rise is expected to be temporary thanks to government interventions. The increase was largely driven by higher prices for alcohol and tobacco, which jumped to 5.2% from 4.0% in November due to the timing of tobacco duty changes, and transport costs, which rose to 4.0% from 3.7% on the back of higher airfares. Additional upward pressure came from food and non-alcoholic beverages (4.5% vs. 4.2%). Services inflation, a key gauge of domestic price pressures for the BOE, edged up slightly to 4.5% from 4.4%, below expectations. Core inflation, which excludes volatile items like unprocessed food and energy, remained steady at 3.2%, marking its lowest level since December 2024.
Published on 2026-01-21

UK Inflation Rate Falls More than Expected
The annual inflation rate in the UK slowed to 3.2% in November 2025, the lowest in eight months, compared to 3.6% in October and forecasts of 3.5%. The figure is also lower than the Bank of England's prediction of 3.4%. The largest downward contribution came from prices for food and non-alcoholic beverages (4.2% vs 4.9%), particularly bread and cereals, where the prices of products such as cakes, biscuits and breakfast cereals fell this year. Prices also slowed for alcohol and tobacco (4% vs 5.9%), reaching the lowest since December 2022; transport (3.7% vs 3.8%); and housing and utilities (5.1% vs 5.2%), including actual rents for housing (3.8% vs 4.1%). Services inflation eased to 4.4% from 4.5%, below the central bank forecasts of 4.5%. In addition, cost fell for clothing and footwear (-0.6% vs 0.3%), mostly women's clothing. Prices for recreation and culture rose 2.9%, the same as in October. Compared to the previous month, the CPI fell 0.2%, the biggest decline since July 2024.
Published on 2025-12-17

UK Inflation Rate Falls More than Expected
The annual inflation rate in the UK slowed to 3.2% in November 2025, the lowest in eight months, compared to 3.6% in October and forecasts of 3.5%. The largest downward contributions came from prices for food and non-alcoholic beverages (4.2% vs 4.9%), particularly bread and cereals, where the prices of products such as cakes, biscuits and breakfast cereals fell this year. Prices also slowed sharply for alcohol and tobacco (4% vs 5.9%), reaching the lowest since December 2022; transport (3.7% vs 3.8%); housing and utilities (5.1% vs 5.2%), including actual rents for housing (3.8% vs 4.1%). In addition, cost fell for clothing and footwear (-0.6% vs 0.3%), mostly women's clothing. Prices for recreation and culture rose 2.9%, the same as in October. Services inflation eased to 4.4% from 4.5%.
Published on 2025-12-17

UK Inflation Rate Slows as Expected
The UK’s annual inflation rate eased to 3.6% in October 2025, the lowest level in four months, down from 3.8% recorded in each of the previous three months. The figure came in line with expectations from both the Bank of England and market analysts. Prices slowed for housing and utilities (5.2% vs 7.3%), namely gas (2.1% vs 13%) and electricity (2.7% vs 8%) due to a change in the Office of Gas and Electricity Markets energy price cap in October. Smaller price increases were also seen for restaurants and hotels (3.8% vs 3.9%), services (4.5% vs 4.7%) and clothing and footwear (0.3% vs 0.5%). On the other hand, inflation for transportation was unchanged at 3.8% while it accelerated for food and non-alcoholic beverages (4.9% vs 4.5%) and recreation and culture (2.9% vs 2.7%). Compared to the previous month, the CPI rose 0.4%, following a flat reading in September and matching forecasts. Meanwhile, annual core inflation dropped to a six-month low of 3.4%.
Published on 2025-11-19

UK Inflation Rate Slows as Expected
The UK’s annual inflation rate eased to 3.6% in October 2025, the lowest level in four months, down from 3.8% recorded in each of the previous three months. The figure came in line with expectations from both the Bank of England and market analysts. Prices slowed for housing and utilities (5.2% vs 7.3%), namely gas (2.1% vs 13%) and electricity (2.7% vs 8%) due to a change in the Office of Gas and Electricity Markets energy price cap in October. Smaller price increases were also seen for restaurants and hotels (3.8% vs 3.9%) and services (4.5% vs 4.7%). On the other hand, inflation for transportation was unchanged at 3.8% while it accelerated for food and non-alcoholic beverages (4.9% vs 4.5%) and recreation and culture (2.9% vs 2.7%).
Published on 2025-11-19

UK Inflation Rate Below Forecasts at 3.8%
The annual inflation rate in the UK remained steady at 3.8% in September 2025, unchanged from the previous two months and below expectations of 4%. Transportation prices rose by 3.8% (vs 2.4% in August), driven primarily by higher costs for motor fuels and air fares, and to a lesser extent, vehicle maintenance and repair. Prices also accelerated in restaurants and hotels (3.9% vs 3.8%) and in clothing and footwear (0.5% vs 0.2%). Conversely, inflation slowed in recreation and culture (2.7% vs 3.2%), mostly live music events, and in food and non-alcoholic beverages (4.5% vs 5.1%), the first moderation since March, partly reflecting a greater increase in sales and discounting activity in September 2025 compared with the same month a year earlier. Price growth also eased slightly for housing and utilities (7.3% vs 7.4%). Services inflation was unchanged at 4.7%. On a monthly basis, the CPI was unchanged. Annual core inflation unexpectedly slowed to 3.5% from 3.6%.
Published on 2025-10-22

UK Inflation Rate Below Forecasts at 3.8%
The annual inflation rate in the UK remained steady at 3.8% in September 2025, unchanged from the previous two months and below market expectations of 4%. Transportation made the largest upward contribution, while recreation and culture, along with food and non-alcoholic beverages, provided the most significant downward offsets.
Published on 2025-10-22

UK Inflation Rate Below Forecasts at 3.8%
The annual inflation rate in the UK remained steady at 3.8% in September 2025, unchanged from the previous two months and below expectations of 4%. Transportation prices rose by 3.8% (vs 2.4% in August), driven primarily by higher costs for motor fuels and air fares, and to a lesser extent, vehicle maintenance and repair. Prices also accelerated in restaurants and hotels (3.9% vs 3.8%) and in clothing and footwear (0.5% vs 0.2%). Conversely, inflation slowed in recreation and culture (2.7% vs 3.2%), largely due to lower prices for live music events, and in food and non-alcoholic beverages (4.5% vs 5.1%), the first moderation since March, partly reflecting a greater increase in sales and discounting activity in September 2025 compared with the same month a year earlier. Price growth also eased slightly for housing and utilities (7.3% vs 7.4%). On a monthly basis, the CPI was unchanged, following a 0.3% increase in August. Annual core inflation unexpectedly slowed to 3.5% from 3.6%.
Published on 2025-10-22

UK Inflation Rate Steadies at 3.8%
The UK’s annual inflation rate held steady at 3.8% in August 2025, unchanged from July and remaining near the highs last seen in January 2024, in line with expectations. Inflation slowed for transport (2.4% vs 3.2%), with prices for air fares falling 3.5% and making the largest downward contribution. Inflation was also lower for services (4.7% vs 5%), recreation and culture (3.2% vs 3.4%) and clothing and footwear (0.2% vs 0.3%) and steadied for housing and utilities (7.4%). On the other hand, the largest upward contribution came from motor fuels. Inflation also inflation accelerated for restaurants and hotels (3.8% vs 3.4%), food (5.1%, the highest since January 2024, vs 4.9%), and furniture, household equipment and maintenance (0.8% vs 0.7%). On a monthly basis, the CPI rose 0.3%, following a 0.1% gain in July and matching forecasts. Annual core inflation eased to 3.6% from 3.8%, matching forecasts.
Published on 2025-09-17

UK Inflation Rate Steadies at 3.8%
The UK’s annual inflation rate held steady at 3.8% in August 2025, unchanged from July and remaining near the highs last seen in January 2024, in line with market expectations. Inflation slowed for transport (2.4% vs 3.2%), with prices for air fares falling 3.5% and making the largest downward contribution. This was was probably influenced by the timing of the flights priced in relation to school summer holidays, particularly return flights from Europe. These return European flights were during the school term in July 2024, but during the school holidays in July 2025. Inflation was also lower for recreation and culture (3.2% vs 3.4%) and clothing and footwear (0.2% vs 0.3%) and steadied for housing and utilities (7.4%). On the other hand, the largest upward contribution came from motor fuels, and inflation accelerated for restaurants and hotels (3.8% vs 3.4%), food (5.1% vs 4.9%), and furniture, household equipment and maintenance (0.8% vs 0.7%)
Published on 2025-09-17

UK Inflation Rate Steadies at 3.8%
The UK’s annual inflation rate held steady at 3.8% in August 2025, unchanged from July and remaining near the highs last seen in January 2024, in line with expectations. Inflation slowed for transport (2.4% vs 3.2%), with prices for air fares falling 3.5% and making the largest downward contribution. Inflation was also lower for services (4.7% vs 5%), recreation and culture (3.2% vs 3.4%) and clothing and footwear (0.2% vs 0.3%) and steadied for housing and utilities (7.4%). On the other hand, the largest upward contribution came from motor fuels. Inflation also inflation accelerated for restaurants and hotels (3.8% vs 3.4%), food (5.1% vs 4.9%), and furniture, household equipment and maintenance (0.8% vs 0.7%). On a monthly basis, the CPI rose 0.3%, following a 0.1% gain in July and matching forecasts. Annual core inflation eased to 3.6% from 3.8%, matching forecasts.
Published on 2025-09-17

UK Inflation Rate Accelerates to 3.8%
The annual inflation rate in the UK jumped to 3.8% in July 2025, the highest since January 2024, up from 3.6% in June and above market expectations of 3.7%. The main upward pressure came from transport, where prices climbed 3.2% (vs. 1.7% in June), driven by a 30.2% surge in airfares, likely reflecting the timing of school summer holidays. Additional contributions came from higher motor fuel costs, sea fares, and roadside recovery services. Inflation also increased in restaurants and hotels (3.4% vs. 2.6%), mainly from overnight hotel stays; and in food and non-alcoholic beverages (4.9% vs. 4.5%). By contrast, housing and household services provided the main downward effect, with inflation easing to 6.2% from 6.7% amid softer owner-occupiers’ housing costs and rents. On a monthly basis, CPI rose 0.1%, defying forecasts of a 0.1% decline but slowing from June’s 0.3% gain. Core inflation inched up to 3.8% from 3.7%.
Published on 2025-08-20

UK Inflation Rises to 3.6%, a 2024 High
The annual inflation rate in the UK rose to 3.6% in June 2025, the highest since January 2024, up from 3.4% in May and above expectations that it would remain unchanged. The main upward pressure came from transport prices, which increased by 1.7% (vs 0.7% in May), driven largely by motor fuel costs. Additional upward contributions came from airfares, particularly on long-haul and European routes, as well as rail fares and maintenance and repair of personal transport equipment. Clothing and footwear prices also rose (0.5% vs -0.3%) and food inflation climbed to 4.5%, the highest since February 2024, mainly due to cakes and cheddar cheese. On the other hand, services inflation remained steady at 4.7%, while inflation eased in housing and utilities (7.5% vs 7.7%) and household services (6.7% vs 6.9%). On a monthly basis, the CPI rose by 0.3%, above the 0.2% increase in May. Core inflation also accelerated, with the annual rate reaching 3.7% and the monthly rate hitting 0.4%.
Published on 2025-07-16