Inflation United Kingdom 1998

Average inflation: 1.8%

Current Inflation

Inflation is low at 1.8%, below the ECB target of 2%.

Peak and Trough

The highest inflation was in May at 2.2%. The lowest inflation was in August at 1.6%.

Highest month
May: 2.2%
Lowest month
August: 1.6%
Difference
0.6 percentage points
Months with data
12 of 12

Category Insights

The highest price increase was in Education with an average of 5.7%. The lowest price increase was in Clothing and footwear with an average of -3.9%.

Highest increase
Education: 5.7%
Lowest increase
Clothing and footwear: -3.9%

Historical Context

Current inflation is 0.6% lower than the 5-year average of 2.4%. This approaches the lowest level since records began (1.8% in 1998).

5-year average
2.4%
10-year average
4%
All-time high (1980)
18.1%
All-time low (1998)
1.8%

Trend

Inflation shows a downward trend. Compared to 1997, inflation has fallen by +0.4 percentage point.

Change vs. previous year
-0.4 percentage points
Largest monthly swing
January: -0.8 percentage points

ECB Target

Inflation is close to the ECB target of 2.0%.

Purchasing Power

At this inflation rate, purchasing power gradually decreases. The impact on daily expenses is relatively limited.

What you could buy for €100 this year will cost approximately €101.80 next year at this inflation rate.

Multi-year trend

Monthly figures 1998

Inflation by category

Food and non-alcoholic beverages
1.0%
-0.8vs avg.
More details →
Alcoholic beverages, tobacco and narcotics
5.4%
+3.6vs avg.
More details →
Clothing and footwear
-3.9%
-5.7vs avg.
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Housing, water, electricity, gas and other fuels
2.3%
+0.5vs avg.
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Furnishings, household equipment and maintenance
0.3%
-1.5vs avg.
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Health
3.6%
+1.8vs avg.
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Transport
2.3%
+0.5vs avg.
More details →
Communication
-1.5%
-3.3vs avg.
More details →
Recreation and culture
0.5%
-1.3vs avg.
More details →
Education
5.7%
+3.9vs avg.
More details →
Restaurants and hotels
3.9%
+2.1vs avg.
More details →
Miscellaneous goods and services
3.8%
+2.0vs avg.
More details →

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

Month overview

Month Inflation Difference vs. 1997
January 1.8% -0.8
February 1.8% -0.6
March 1.9% -0.3
April 2.1% 0.0
May 2.2% +0.1
June 1.9% -0.2
July 1.7% -0.7
August 1.6% -0.7
September 1.7% -0.5
October 1.6% -0.6
November 1.7% -0.4
December 1.9% 0.0
Average 1.8%

Data source

Data from OECD. Last updated: 11/01/2026.

See also