Inflation United Kingdom 1990

Average inflation: 8.0%

Inflation in 1990

Inflation is very high at 8.0%, far above the ECB target.

Peak and Trough

The highest inflation was in September at 9.2%. The lowest inflation was in January at 5.9%.

Highest month
September: 9.2%
Lowest month
January: 5.9%
Difference
3.3 percentage points
Months with data
12 of 12

Category Insights

The highest price increase was in Housing, water, electricity, gas and other fuels with an average of 10.9%. The lowest price increase was in Clothing and footwear with an average of 3.7%.

Highest increase
Housing, water, electricity, gas and other fuels: 10.9%
Lowest increase
Clothing and footwear: 3.7%

Historical Context

Inflation is 2.9 percentage points higher than the 5-year average of 5.1%.

5-year average
5.1%
10-year average
6.2%
All-time high (1975)
24.1%
All-time low (1986)
3.4%

Trend

Over the period 1988-1990, inflation shows an upward trend. Compared to 1989, inflation has risen by 2.3 percentage points.

Change vs. previous year
+2.3 percentage points
Largest monthly swing
September: +3.5 percentage points

ECB Target

Inflation is 6.0 percentage points 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 £108 next year at this inflation rate.

Multi-year trend

Monthly figures 1990

Inflation by category

Food and non-alcoholic beverages
8.1%
+0.1 vs avg.
Alcoholic beverages, tobacco and narcotics
7.3%
-0.7 vs avg.
Clothing and footwear
3.7%
-4.3 vs avg.
Housing, water, electricity, gas and other fuels
10.9%
+2.9 vs avg.
Furnishings, household equipment and maintenance
4.6%
-3.4 vs avg.
Health
8.6%
+0.6 vs avg.
Transport
6.4%
-1.6 vs avg.
Communication
5.6%
-2.4 vs avg.
Recreation and culture
5.3%
-2.7 vs avg.
Education
9.3%
+1.3 vs avg.
Restaurants and hotels
9.2%
+1.2 vs avg.
Miscellaneous goods and services
5.5%
-2.5 vs avg.

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

Month overview

Month Inflation Difference vs. 1989
January 5.9% +0.2
February 6.3% +0.5
March 6.2% +0.3
April 7.7% +2.1
May 8.2% +2.3
June 8.2% +2.4
July 8.2% +2.5
August 8.9% +3.4
September 9.2% +3.5
October 9.2% +3.4
November 9.2% +3.5
December 9.2% +3.4
Average 8.0%

Data source

Data from OECD. Last updated: 13/01/2026.

See also