Annual inflation rate in the UK increased to 2.5% in June of 2021 from 2.1% in May, above market forecasts of 2.2%. It is the highest inflation rate since August of 2018, with transport making the biggest upward impact (7.2%) while a low base effect from last year is also weighing. Also, prices for second-hand cars (5.6%), clothing and footwear (3%), eating and drinking out, and motor fuel (20.3%) rose in 2021 but mostly fell in 2020, resulting in the largest upward contributions to the change in the CPI which were partially offset by a large downward contribution from games, toys and hobbies (-0.9%), where prices fell this year but rose a year ago. Cost of food and non alcoholic beverages was down 0.6%. The BoE predicts inflation will exceed 3% although price pressures should be transitory. source: Office for National Statistics

Inflation Rate in the United Kingdom averaged 2.48 percent from 1989 until 2021, reaching an all time high of 8.50 percent in April of 1991 and a record low of -0.10 percent in April of 2015. This page provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. United Kingdom Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2021.

Inflation Rate in the United Kingdom is expected to be 2.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in the United Kingdom to stand at 1.90 in 12 months time. In the long-term, the United Kingdom Inflation Rate is projected to trend around 1.70 percent in 2022 and 1.80 percent in 2023, according to our econometric models.

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United Kingdom Inflation Rate

Actual Previous Highest Lowest Dates Unit Frequency
2.50 2.10 8.50 -0.10 1989 - 2021 percent Monthly


Calendar GMT Actual Previous Consensus TEForecast
2021-04-21 06:00 AM Mar 0.7% 0.4% 0.8% 0.8%
2021-05-19 06:00 AM Apr 1.5% 0.7% 1.4% 1.4%
2021-06-16 06:00 AM May 2.1% 1.5% 1.8% 1.8%
2021-07-14 06:00 AM Jun 2.5% 2.1% 2.2% 2.3%
2021-08-18 06:00 AM Jul 2.5% 2.6%
2021-09-15 06:00 AM Aug
2021-10-20 06:00 AM Sep
2021-11-17 07:00 AM Oct


News Stream
UK Inflation Rate Up to 3-Year High
Annual inflation rate in the UK increased to 2.5% in June of 2021 from 2.1% in May, above market forecasts of 2.2%. It is the highest inflation rate since August of 2018, with transport making the biggest upward impact (7.2%) while a low base effect from last year is also weighing. Also, prices for second-hand cars (5.6%), clothing and footwear (3%), eating and drinking out, and motor fuel (20.3%) rose in 2021 but mostly fell in 2020, resulting in the largest upward contributions to the change in the CPI which were partially offset by a large downward contribution from games, toys and hobbies (-0.9%), where prices fell this year but rose a year ago. Cost of food and non alcoholic beverages was down 0.6%. The BoE predicts inflation will exceed 3% although price pressures should be transitory.
2021-07-14
UK Inflation Rate Jumps to Near 2-Year High
The consumer price inflation rate in the UK climbed to 2.1 percent year-on-year in May 2021, from 1.5 percent in the previous month and comfortably above market expectations of 1.8 percent. It was the highest rate since July 2019, reflecting the ongoing economic recovery and re-opening efforts, as well as the low base year. Main upward pressure came from clothing; motor fuel; recreational goods, particularly games and recording media; and meals and drinks consumed out. On the other hand, prices for food and non-alcoholic beverages fell for a seventh consecutive month, particularly for bread and cereals.
2021-06-16
UK Inflation Rate Highest in a Year
Annual inflation rate in the UK increased to 1.5% in April of 2021 from 0.7% in March, and compared to market forecasts of 1.4%. It is the highest reading since March of 2020, as the economy started to reopen after a nationwide coronavirus lockdown in the beginning of the year and as the cap on energy bills was lifted. From April 1st the price cap returned to pre-pandemic levels (up by £96 to £1,138), principally as a result of changes in wholesale energy prices. Rising household utility (2.4% vs -7.3% in March), clothing (0.5% vs -3.5%), and motor fuel prices (13.6% vs 3.5%) made the largest upward contributions which were partially offset by a large downward contribution from recreation and culture (0.7% vs 2.3%). Also, the temporary 5% VAT on hospitality, which will last until the end of September, helped to keep costs low. If taxes were at their normal levels, inflation would have risen to 3.2%, the highest rate for nine years.
2021-05-19
UK Inflation Rate Rises Less than Expected
Annual inflation rate in the United Kingdom edged up to 0.7 percent in March of 2021 from 0.4 percent in February and below market expectations of 0.8 percent. The biggest upward contribution came from rising prices for motor fuels (3.5 percent) which were partially offset by falls in the price of food and non-alcoholic beverages (-1.4 percent), namely bread and cereals, and confectionery. Petrol prices stood at 123.7 pence per litre in March 2021, compared with 119.4 pence per litre in March 2020 and a recent low of 106.2 pence per litre in May 2020. The first stage of easing the nationwide coronavirus lockdown started in March but stores, pubs and restaurants opened in April only. British inflation is forecast to rise sharply in the coming months, due to an increase in regulated household energy bills in April, higher global oil prices and a low comparison base as demand sank last year due to the coronavirus.
2021-04-21

United Kingdom Inflation Rate
In the United Kingdom, the most important categories in the consumer price index are Transport (16 percent of the total weight) and Recreation and Culture (15 percent). Housing, Water, Electricity, Gas and Other Fuels accounts for 13 percent; Restaurants and Hotels for 12 percent and Food and Non-alcoholic Beverages for 10 percent. The index also includes: Miscellaneous Goods and Services (9 percent); Clothing and Footwear (7 percent); Furniture, Household Equipment and Maintenance (6 percent). Alcoholic Beverages and Tobacco; Health, Communication and Education account for remaining 11 percent of total weight.