United Kingdom Inflation Rate

Last Release

Dec 31, 2024

Actual

2.5

Units In

2.6

Frequency

Monthly

Next Release

Feb 19, 2025

Time to Release

1 Months 2 Days 9 Hours

Highest	Lowest	Average	Date Range	Source
11.1 Oct 2022	-0.1 Apr 2015	2.82 %	1989-2024	Office for National Statistics

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.

Latest Updates

Annual inflation rate in the UK unexpectedly edged lower to 2.5% in December 2024 from 2.6% in November, below forecasts of 2.6%. However, it matched the BoE's forecast from early November. Prices slowed for restaurants and hotels (3.4%, the lowest since July 2021 vs 4%), mainly due to a 1.9% fall in prices of hotels. Inflation also slowed for recreation and communication (3.4% vs 3.6%) and services (4.4%, the lowest since March 2022 vs 5) and steadied for food and non-alcoholic beverages (at 2%). Meanwhile, prices decreased less for transport (-0.6% vs -0.9%) as upward effects from motor fuels and second-hand cars (1%) partially offset a downward effect from air fare (-26%). Also, prices rose slightly more for housing and utilities (3.1% vs 3%). Compared to November, the CPI rose 0.3%, above 0.1% in the previous period but below forecasts of 0.4%. The annual core inflation rate also declined to 3.2% from 3.5% and the monthly rate went up to 0.3%, below forecasts of 0.5%.