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As of the second quarter of 2026, the CPIH index in the United Kingdom was , indicating that consumer goods and services had increased in price by ****Ìý±èercent when compared with the baseline year of 2015. In June 2026, the CPIH inflation rate was ****percent, compared with *** percent at the start of 2026. The CPIH index is the consumer price index, which also includes costs related to owning and maintaining a home. 

Inflation falls to more usual levels in 2024

After reaching a peak of *** percent in October 2022, the CPIH inflation rate fell throughout 2023 and into 2024, eventually falling to a low of *** percent in October 2024. Although the decline in energy inflation led to a significant fall in prices early in the 2023, other aspects of inflation, such as food prices remained high for a longer period. Throughout 2023 inflation in the UK was still quite high across many sectors, indicated by persistently high core inflation (inflation excluding food and energy prices) rates reported that year. 

UK economy continues to struggle

Since the COVID-19 pandemic, the UK's economic performance has been quite lackluster. Although the economy bounced back from the initial drop in GDP caused by lockdowns, it has alternated between months of low growth and declines in GDP since 2021. In the last two quarters of 2023, the UK economy shrank by *** percent and then by *** percent. As a result, the UK economy officially ended 2023 in a technical recession. While growth picked up in the first half of 2024, there was no growth in the third quarter of the year.