Inflation United Kingdom 1986
Average inflation: 3.4%
Current Inflation
Inflation is high at 3.4%, well above the ECB target.
Peak and Trough
The highest inflation was in January at 5.5%. The lowest inflation was in July at 2.4%.
- Highest month
- January: 5.5%
- Lowest month
- July: 2.4%
- Difference
- 3.1 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 3.3%. The lowest price increase was in Food and non-alcoholic beverages with an average of 3.3%.
- Highest increase
- Food and non-alcoholic beverages: 3.3%
- Lowest increase
- Food and non-alcoholic beverages: 3.3%
Historical Context
Current inflation is 2.2% lower than the 5-year average of 5.6%. This approaches the lowest level since records began (3.4% in 1986).
- 5-year average
- 5.6%
- 10-year average
- 6.6%
- All-time high (1981)
- 11.9%
- All-time low (1986)
- 3.4%
Trend
Inflation shows a downward trend. Compared to 1985, inflation has fallen by +2.7 percentage point.
- Change vs. previous year
- -2.7 percentage points
- Largest monthly swing
- June: -4.5 percentage points
ECB Target
Inflation is 1.4% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for €100 this year will cost approximately €103.40 next year at this inflation rate.
Multi-year trend
Monthly figures 1986
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 1985 |
|---|---|---|
| January | 5.5% | +0.5 |
| February | 5.1% | -0.3 |
| March | 4.2% | -1.9 |
| April | 3.1% | -3.8 |
| May | 2.7% | -4.3 |
| June | 2.5% | -4.5 |
| July | 2.4% | -4.5 |
| August | 2.4% | -3.8 |
| September | 3.0% | -2.9 |
| October | 3.0% | -2.4 |
| November | 3.5% | -1.9 |
| December | 3.8% | -1.8 |
| Average | 3.4% |
Data source
Data from OECD. Last updated: 17/12/2025.