UK Inflation Statistics: CPI, CPIH and RPI Data

What the figures mean

Inflation measures the rate at which the general level of prices in the economy rises over time. When CPI is 2.8%, it means that goods and services cost 2.8% more on average than they did 12 months earlier. For a household spending 2,500 pounds per month, a 2.8% inflation rate adds roughly 70 pounds per month to the cost of the same basket of goods and services compared with a year ago.

The ONS publishes two headline measures. CPI is the internationally comparable measure used to set the Bank of England inflation target of 2%. CPIH adds owner occupiers housing (OOH) costs, which account for roughly 18% of the CPIH basket, making it a broader measure of the cost of living for homeowners. In May 2026, CPI was 2.8% and CPIH was 3.0%, reflecting the moderating effect of slowing owner occupiers housing costs.

Core inflation, which strips out the volatile energy, food, alcohol and tobacco components, provides a cleaner read on underlying domestic price pressure. Core CPI was 2.6% in May 2026. The Bank of England monitors services inflation particularly closely as it is seen as more persistent and more driven by domestic costs rather than global commodity prices. Services CPI was 3.7% in May 2026, up from 3.2% in April, reflecting sticky domestic cost pressures in sectors such as hospitality, insurance, and professional services.

CPI month by month in 2026

CPI has followed a volatile path in 2026. The rate stood at 3.0% in January 2026, held at 3.0% in February, then rose to 3.3% in March, driven by higher motor fuel prices and food costs linked to energy market disruption following escalation of the Middle East conflict. April saw a sharp fall to 2.8% following the introduction of Ofgem's revised energy price cap on 1 April 2026, which reduced electricity and gas bills and provided a significant downward base effect on the housing and household services category. CPI held at 2.8% in May 2026.

The March 2026 spike to 3.3% was notable. Motor fuel prices rose sharply, with petrol increasing by 8.6 pence per litre between February and March and diesel rising by 17.6 pence per litre. Domestic heating oil surged by 95.3%, the largest increase since September 2022. These movements reflect the transmission of global oil price increases into UK pump prices and household energy costs.

Transport: the dominant upward pressure

Transport inflation was 6.8% in May 2026, the largest contribution to the monthly change in CPI and the highest transport CPI reading since December 2022. Within transport, motor fuels were the primary driver as Middle East conflict disrupted global oil supply chains. Air fares also rose, and vehicle excise duty changes contributed to the annual comparison. The transport category covers motor vehicles, fuels and lubricants, passenger transport services including rail fares and air travel, and vehicle maintenance.

For households, transport inflation at 6.8% is running well above the headline rate and above wage growth for most private sector workers. A household spending 300 pounds per month on transport costs faces an additional 20 pounds per month compared with a year ago at this rate.

Food inflation

Food and non-alcoholic beverages CPI was 2.2% in May 2026, down from 3.0% in April, the lowest since December 2024. This moderation reflects easing global agricultural commodity prices and some pass-through of lower energy costs into food production, though the impact of elevated transport costs on food supply chains continues to exert some upward pressure. At 2.2%, food inflation remains above the headline CPI rate.

Housing costs and rent inflation

Housing and household services CPI was 2.7% in May 2026, down from 3.0% in April, the softest reading in almost two years. The primary driver of this deceleration is the reduction in owner occupiers housing costs, where the OOH contribution has decreased for 16 consecutive months from a recent high of 1.31 percentage points in January 2025 to 0.57 percentage points in May 2026. The Ofgem energy price cap change on 1 April 2026 reduced electricity and gas contributions and provided a significant base effect lowering the housing category in April which has partially carried through to May.

Separately, private rent inflation measured by the ONS Price Index of Private Rents showed average UK rents rising by 3.3% in the 12 months to May 2026, to an average of 1,383 pounds per month. This is a separate measure from CPI housing and reflects actual rents paid by tenants rather than imputed owner occupiers costs.

The inflation peak and the cost of living since 2021

UK CPI peaked at 11.1% in October 2022, a 41-year high driven by post-pandemic supply chain disruption and the energy price shock following Russia's invasion of Ukraine. Between May 2021 and March 2026, the ONS estimates that UK consumer prices increased by 27.3% in total. This cumulative price level increase means that even though the annual rate of inflation has fallen back toward 2-3%, households are still paying substantially more in absolute terms for the same goods and services than they were at the start of the cost of living crisis.

The Bank of England base rate was raised from 0.1% in December 2021 to a peak of 5.25% in August 2023 in response to the inflation surge, before being cut in a series of steps. By 30 April 2026, the rate stood at 3.75%, a cumulative reduction of 1.5 percentage points from the peak. The MPC held rates at 3.75% at its April 2026 meeting, citing uncertainty around the inflation outlook due to energy market volatility.

Bank of England projections

The Bank of England projected in its April 2026 Monetary Policy Report that CPI would be around 3.1% in Q2 2026, 3.3% in Q3, and would rise somewhat further in Q4. These projections were based on energy market pricing in mid-April and assume the current global energy market conditions persist. The Bank identified Middle East conflict and associated energy price uncertainty as the primary upside risk to the inflation outlook.

Prior to the escalation of Middle East tensions in late 2025, the CPI annual rate had been expected to fall to around 2% from April 2026 and remain at that level. The revision to the inflation outlook illustrates how quickly external shocks can shift the trajectory of UK consumer prices.

RPI and core measures

The Retail Prices Index (RPI) annual rate was 3.1% in May 2026. RPI is no longer classified as a National Statistic by the UK Statistics Authority because of known technical deficiencies in its calculation methodology, but it remains in use for uprating rail ticket prices, student loan interest, and certain other indexed obligations. It tends to run somewhat above CPI because of differences in formula and coverage, including the inclusion of mortgage interest payments.

Core CPIH, which excludes energy, food, alcohol and tobacco, was 2.8% in May 2026, unchanged from April. Core CPI was 2.6%, up from 2.5% in April. Goods CPI slowed from 2.4% to 2.0%, while services CPI accelerated from 3.2% to 3.7%. The divergence between goods and services inflation is consistent with a pattern seen across major economies where goods prices have moderated as supply chains normalised but services prices remain elevated due to persistent wage growth in labour-intensive sectors.

How UK inflation compares internationally

In April 2026, UK CPI was 2.8%, compared with US inflation of approximately 2.3% and eurozone inflation of 2.5% on a harmonised basis. This marked the first month since December 2024 that UK inflation had fallen below the eurozone rate. The UK's exposure to energy price volatility through its position as a net energy importer, and the pass-through of global transport costs into import prices, have kept UK inflation somewhat elevated relative to some peer economies.

What inflation means for savings and pensions

When inflation runs above the interest rate on a savings account, the real value of those savings declines over time. With CPI at 2.8% and many easy-access savings accounts paying rates in the range of 3.5-4.5% in mid-2026, some savers are achieving positive real returns for the first time since the cost of living crisis began. However, the gap is narrow and the direction of travel for savings rates depends heavily on whether the Bank of England cuts base rate further in 2026.

For defined benefit pension members, the annual CPI and RPI figures directly affect pension increases. Many public sector pensions are linked to CPI and are expected to increase by approximately 2.8% in April 2027 based on the September 2026 CPI figure, which has not yet been published. State Pension increases under the triple lock are determined by the highest of CPI in September, earnings growth, or 2.5%.

What is the current UK inflation rate?

CPI was 2.8% in the 12 months to May 2026, unchanged from April 2026. CPIH, which includes owner occupiers housing costs, was 3.0%. This page is updated monthly following ONS releases.

What is core inflation in the UK?

Core CPI, which excludes energy, food, alcohol and tobacco, was 2.6% in May 2026. Core inflation strips out volatile components to show the underlying trend in domestic price pressures.

Why is transport inflation so high?

Transport CPI was 6.8% in May 2026, the highest since December 2022. The primary driver is motor fuel prices, which rose sharply due to Middle East conflict disrupting global oil supply, combined with higher air fares and vehicle excise duty effects.

What was UK inflation at its peak?

CPI peaked at 11.1% in October 2022, a 41-year high driven by energy price shocks and post-pandemic supply chain disruption. The cumulative increase in UK consumer prices between May 2021 and March 2026 was 27.3%.

What is the difference between CPI and CPIH?

CPIH adds owner occupiers housing (OOH) costs to the CPI basket, representing the cost of living in your own home. OOH costs account for around 18% of the CPIH weight. CPIH is the ONS headline measure; CPI is used for the Bank of England 2% inflation target.

What is RPI and how does it differ from CPI?

RPI was 3.1% in May 2026. It is no longer a National Statistic due to methodological issues but remains used for rail fares, student loans, and some index-linked bonds. RPI typically runs above CPI because it includes mortgage interest payments and uses a different averaging formula.

How does UK inflation compare with the eurozone?

UK CPI was 2.8% in April 2026, compared with approximately 2.5% in the eurozone on a harmonised basis. This was the first month since December 2024 that UK inflation fell below the eurozone rate, reflecting the downward effect of Ofgem's energy price cap change on 1 April 2026.

What inflation means for mortgage holders

For households with a variable-rate or tracker mortgage, the relationship between inflation and the Bank of England base rate is the most direct financial channel. When inflation is above target, the Bank tends to maintain or raise rates, keeping borrowing costs elevated. With CPI at 2.8% and the BoE holding at 3.75%, mortgage holders on standard variable rates (SVRs) and base-rate trackers are paying significantly more than borrowers on fixed rates that predate the tightening cycle. The average SVR in mid-2026 is in the range of 7.5-8.5%, compared with fixed rates of 4.0-4.5% for new borrowers with adequate equity.

For the approximately 3.9 million households estimated by the Bank of England (as of December 2025) to still face a payment increase on remortgaging, the pace at which CPI returns to the 2% target will determine how much relief comes through lower fixed rates before their current deal expires. The Bank of England's April 2026 projections suggested CPI would rise further in H2 2026 before falling back, implying limited scope for additional base rate cuts in the near term and a slower decline in fixed mortgage rates than some borrowers were hoping for.

What inflation means for savings

With CPI at 2.8% and CPIH at 3.0%, savers need to earn above these rates to achieve a positive real return. Cash ISA rates, easy-access savings accounts, and premium bonds have generally offered rates in the 3.5-4.5% range in mid-2026, meaning that some savers are earning a positive real return for the first time since the cost of living crisis intensified. However, this positive real return is narrow, dependent on the individual rate obtained, and vulnerable to further rate cuts by the Bank of England as inflation falls.

For defined contribution pension savers, inflation erodes the real value of both contributions and accumulated pots if investment returns do not outpace it. The real return on the ONS AWE measure-deflated against CPIH -- the index most relevant to maintaining living standards -- was 0.1% for regular pay in February to April 2026, reflecting the ongoing challenge for workers seeking to build real financial resilience in a period of elevated price levels.

How to track UK inflation

The ONS publishes consumer price inflation data monthly, typically on the third Wednesday of the following month. The CPI release for May 2026 was published on 17 June 2026 and the next release is scheduled for 22 July 2026. The full dataset, including the detailed price index tables and time series back to 1988, is available free of charge on the ONS website. The ONS also maintains a personal inflation calculator that allows individuals to enter their own spending patterns across different categories and receive a personalised inflation estimate based on their expenditure profile, which may differ significantly from the national average.

The House of Commons Library publishes a monthly economic indicator briefing that synthesises the latest CPI data alongside GDP, employment, and other key series, providing a useful comparative context. The Bank of England Monetary Policy Report, published quarterly, contains the MPC's assessment of the inflation outlook and their projections under a range of assumptions, including their baseline scenario and alternative risk scenarios. These are freely available on the Bank of England website.

Inflation expectations and second-round effects

Economists and policymakers distinguish between the first-round effects of inflation shocks, where a rise in energy or food prices pushes up the headline rate, and second-round effects, where higher prices feed into wage demands, which then feed back into further price increases. The Bank of England's concern in 2022-23 was that second-round effects from the energy price shock would become embedded, requiring more aggressive rate increases than if inflation remained a purely external cost-push phenomenon.

By mid-2026, with nominal regular pay growth at 3.4% and services inflation at 3.7%, the evidence on second-round effects is mixed. Wage growth has decelerated from the post-pandemic highs but remains above the level consistent with 2% CPI inflation given current productivity trends. Services inflation being higher than goods inflation in May 2026 is consistent with some persistence of domestically generated price pressure. The Bank of England's April 2026 projections factored in the expectation that services inflation would moderate gradually over the projection horizon as labour market conditions ease and nominal wage growth falls further.