UK Core Inflation Steady at 3.2%

The UK's annual core inflation rate edged up to 2.6% in May 2026 from April's nearly five-year low of 2.5%, though it came in slightly below market expectations of 2.7%. Core goods inflation eased to 2.0% from 2.4%, while core services inflation accelerated to 3.7% from 3.2%. On a monthly basis, core consumer prices rose 0.3%, slowing from a 0.7% increase in April and falling short of forecasts of 0.4%. It also marked the softest monthly rise since January.

The UK’s annual core inflation rate eased to 2.5% in April 2026 from 3.1% in the prior month, slightly below market expectations of 2.6%. It marked the lowest reading since July 2021, largely due to a sharp slowdown in core services inflation, which cooled to 3.2% from 4.5% in the previous month. Meanwhile, goods inflation accelerated to 2.4% from 2.1%, indicating persistent price pressures in consumer goods. On a monthly basis, core consumer prices rose 0.7%, easing short of forecasts for a 0.8% increase but picking up from March’s 0.6% gain. The latest figure marked the third straight monthly rise and the fastest monthly pace in a year.

The UK’s annual core inflation rate eased to 3.1% in March 2026, slightly less than both market expectations and February’s 3.2% reading. Despite the softer headline, underlying price pressures gained traction, amid acceleration in both core services inflation (4.5% vs 4.3% in February) and goods inflation (2.1% vs 1.6%). On a monthly basis, core consumer prices rose 0.4%, falling short of forecasts of 0.5% and slowing from February’s 0.6% gain. Still, it marked a second consecutive monthly gain.