Inflation United Kingdom 2006
Average inflation: 2.5%
Inflation in 2006
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
Inflation is 0.7 percentage points 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
Over the period 2004-2006, inflation shows an upward trend. Compared to 2005, inflation has risen by 0.4 percentage points.
- Change vs. previous year
- +0.4 percentage points
- Largest monthly swing
- December: +0.8 percentage points
ECB Target
Inflation is 0.5 percentage points 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
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: 13/01/2026.