Inflation United Kingdom 2006

Average inflation: 2.5%

Current Inflation

Inflation is normal at 2.5%, around the ECB target.

Peak and Trough

The highest inflation was in December at 2.9%. The lowest inflation was in March at 2.0%.

Highest month
December: 2.9%
Lowest month
March: 2.0%
Difference
0.9 percentage points
Months with data
12 of 12

Category Insights

The highest price increase was in Education with an average of 7.2%. The lowest price increase was in Clothing and footwear with an average of -4.0%.

Highest increase
Education: 7.2%
Lowest increase
Clothing and footwear: -4.0%

Historical Context

Current inflation is 0.7% higher than the 5-year average of 1.8%.

5-year average
1.8%
10-year average
1.7%
All-time high (1990)
8%
All-time low (2000)
1.2%

Trend

Inflation shows an upward trend. Compared to 2005, inflation has risen by +0.4 percentage point.

Change vs. previous year
+0.4 percentage points
Largest monthly swing
December: +0.8 percentage points

ECB Target

Inflation is 0.5% 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 €102.50 next year at this inflation rate.

Multi-year trend

Monthly figures 2006

Inflation by category

Food and non-alcoholic beverages
2.4%
-0.1vs avg.
More details →
Alcoholic beverages, tobacco and narcotics
2.7%
+0.2vs avg.
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Clothing and footwear
-4.0%
-6.5vs avg.
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Housing, water, electricity, gas and other fuels
4.7%
+2.2vs avg.
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Furnishings, household equipment and maintenance
-0.5%
-3.0vs avg.
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Health
2.7%
+0.2vs avg.
More details →
Transport
2.9%
+0.4vs avg.
More details →
Communication
0.2%
-2.3vs avg.
More details →
Recreation and culture
-1.2%
-3.7vs avg.
More details →
Education
7.2%
+4.7vs avg.
More details →
Restaurants and hotels
3.2%
+0.7vs avg.
More details →
Miscellaneous goods and services
3.7%
+1.2vs avg.
More details →

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

Month overview

Month Inflation Difference vs. 2005
January 2.2% +0.5
February 2.2% +0.5
March 2.0% 0.0
April 2.2% +0.3
May 2.4% +0.5
June 2.6% +0.6
July 2.5% +0.2
August 2.6% +0.2
September 2.5% 0.0
October 2.5% +0.1
November 2.8% +0.6
December 2.9% +0.8
Average 2.5%

Data source

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

See also