Inflation United Kingdom 2021
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 4.8%. The lowest inflation was in February at 0.7%.
- Highest month
- December: 4.8%
- Lowest month
- February: 0.7%
- Difference
- 4.1 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Transport with an average of 7.2%. The lowest price increase was in Clothing and footwear with an average of 0.3%.
- Highest increase
- Transport: 7.2%
- Lowest increase
- Clothing and footwear: 0.3%
Historical Context
Current inflation is around the 5-year average of 2.0%. This approaches the highest level since records began (2.6% in 2017).
- 5-year average
- 2%
- 10-year average
- 1.9%
- All-time high (2017)
- 2.6%
- All-time low (2020)
- 1%
Trend
Inflation has remained relatively stable. Compared to 2020, the difference is minimal (+1.5 percentage point).
- Change vs. previous year
- +1.5 percentage points
- Largest monthly swing
- December: +4.0 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 2021
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2020 |
|---|---|---|
| January | 0.9% | -0.9 |
| February | 0.7% | -1.0 |
| March | 1.0% | -0.5 |
| April | 1.6% | +0.7 |
| May | 2.1% | +1.4 |
| June | 2.4% | +1.6 |
| July | 2.1% | +1.0 |
| August | 3.0% | +2.5 |
| September | 2.9% | +2.2 |
| October | 3.8% | +2.9 |
| November | 4.6% | +4.0 |
| December | 4.8% | +4.0 |
| Average | 2.5% |
Data source
Data from OECD. Last updated: 13/01/2026.