Inflation United Kingdom 2025

Average inflation: 3.9%

Current Inflation

Inflation is high at 3.9%, well above the ECB target.

Peak and Trough

The highest inflation was in July at 4.2%. The lowest inflation was in March at 3.4%.

Highest month
July: 4.2%
Lowest month
March: 3.4%
Difference
0.8 percentage points
Months with data
11 of 12

Category Insights

The highest price increase was in Education with an average of 7.5%. The lowest price increase was in Clothing and footwear with an average of 0.3%.

Highest increase
Education: 7.5%
Lowest increase
Clothing and footwear: 0.3%

Historical Context

Current inflation is 1.0% lower than the 5-year average of 4.9%.

5-year average
4.9%
10-year average
3.3%
All-time high (2022)
7.9%
All-time low (2015)
0.4%

Trend

Inflation shows a downward trend. Compared to 2024, inflation has fallen by +0.6 percentage point.

Change vs. previous year
+0.6 percentage points
Largest monthly swing
September: +1.5 percentage points

ECB Target

Inflation is 1.9% 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 €103.90 next year at this inflation rate.

Multi-year trend

Monthly figures 2025

Inflation by category

Food and non-alcoholic beverages
4.1%
+0.2vs avg.
More details →
Alcoholic beverages, tobacco and narcotics
5.5%
+1.6vs avg.
More details →
Clothing and footwear
0.3%
-3.6vs avg.
More details →
Housing, water, electricity, gas and other fuels
5.9%
+2.0vs avg.
More details →
Furnishings, household equipment and maintenance
0.4%
-3.5vs avg.
More details →
Health
4.0%
+0.1vs avg.
More details →
Transport
2.5%
-1.4vs avg.
More details →
Communication
5.5%
+1.6vs avg.
More details →
Recreation and culture
3.1%
-0.8vs avg.
More details →
Education
7.5%
+3.6vs avg.
More details →
Restaurants and hotels
3.3%
-0.6vs avg.
More details →
Miscellaneous goods and services
2.5%
-1.4vs avg.
More details →

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

Month overview

Month Inflation Difference vs. 2024
January 3.9% -0.3
February 3.7% -0.1
March 3.4% -0.4
April 4.1% +1.1
May 4.0% +1.2
June 4.1% +1.3
July 4.2% +1.1
August 4.1% +1.0
September 4.1% +1.5
October 3.8% +0.6
November 3.5% 0.0
Average 3.9%

Data source

Data from OECD. Last updated: 11/01/2026.Not all months available yet.

See also