Inflation United Kingdom 1981

Average inflation: 11.9%

Current Inflation

Inflation is very high at 11.9%, far above the ECB target.

Peak and Trough

The highest inflation was in January at 13.0%. The lowest inflation was in July at 10.9%.

Highest month
January: 13.0%
Lowest month
July: 10.9%
Difference
2.1 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 8.7%. The lowest price increase was in Food and non-alcoholic beverages with an average of 8.7%.

Highest increase
Food and non-alcoholic beverages: 8.7%
Lowest increase
Food and non-alcoholic beverages: 8.7%

Historical Context

Current inflation is 1.6% lower than the 5-year average of 13.5%.

5-year average
13.5%
10-year average
14.1%
All-time high (1975)
24.1%
All-time low (1963)
2%

Trend

Inflation shows a downward trend. Compared to 1980, inflation has fallen by +6.2 percentage point.

Change vs. previous year
-6.2 percentage points
Largest monthly swing
May: -10.2 percentage points

ECB Target

Inflation is 9.9% 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 €111.90 next year at this inflation rate.

Multi-year trend

Monthly figures 1981

Inflation by category

Food and non-alcoholic beverages
8.7%
-3.2vs avg.
More details →

Inflation differs per product group. Click on a category for the historical trend.

Month overview

Month Inflation Difference vs. 1980
January 13.0% -5.4
February 12.5% -6.6
March 12.6% -7.2
April 12.0% -9.8
May 11.7% -10.2
June 11.3% -9.7
July 10.9% -6.0
August 11.5% -4.8
September 11.4% -4.5
October 11.7% -3.7
November 12.0% -3.3
December 12.0% -3.1
Average 11.9%

Data source

Data from OECD. Last updated: 17/12/2025.

See also