Inflation United Kingdom 1974
Average inflation: 16.0%
Current Inflation
Inflation is very high at 16.0%, far above the ECB target.
Peak and Trough
The highest inflation was in December at 19.1%. The lowest inflation was in January at 12.0%.
- Highest month
- December: 19.1%
- Lowest month
- January: 12.0%
- Difference
- 7.1 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food and non-alcoholic beverages with an average of 18.0%. The lowest price increase was in Food and non-alcoholic beverages with an average of 18.0%.
- Highest increase
- Food and non-alcoholic beverages: 18.0%
- Lowest increase
- Food and non-alcoholic beverages: 18.0%
Historical Context
Current inflation is 6.4% higher than the 5-year average of 9.6%. This approaches the highest level since records began (16.0% in 1974).
- 5-year average
- 9.6%
- 10-year average
- 7%
- All-time high (1974)
- 16%
- All-time low (1959)
- 0.6%
Trend
Inflation shows an upward trend. Compared to 1973, inflation has risen by +6.8 percentage point.
- Change vs. previous year
- +6.8 percentage points
- Largest monthly swing
- December: +8.5 percentage points
ECB Target
Inflation is 14.0% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.
What you could buy for €100 this year will cost approximately €116.00 next year at this inflation rate.
Multi-year trend
Monthly figures 1974
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 1973 |
|---|---|---|
| January | 12.0% | +4.3 |
| February | 13.1% | +5.2 |
| March | 13.5% | +5.3 |
| April | 15.2% | +6.0 |
| May | 15.9% | +6.4 |
| June | 16.5% | +7.2 |
| July | 17.1% | +7.7 |
| August | 16.9% | +8.0 |
| September | 17.1% | +7.8 |
| October | 17.1% | +7.2 |
| November | 18.3% | +8.0 |
| December | 19.1% | +8.5 |
| Average | 16.0% |
Data source
Data from OECD. Last updated: 17/12/2025.