UK Core Inflation Steady at 3.2%

The UK’s annual core inflation rate stood at 3.2% in December 2025, unchanged from the previous month and matching market expectations. The latest reading remained the lowest level since December 2024, even as price pressures picked up slightly across both goods (2.2% vs 2.1% in November) and services (4.5% vs 4.4%). On a monthly basis, core consumer prices increased 0.3%, rebounding from a 0.2% decline in November.

The UK’s annual core inflation eased to 3.2% in November 2025, down from October's reading and less than market expectations of 3.4%. It marked the lowest level since December 2024. The slowdown was broad-based, with goods inflation easing (2.1% vs 2.6% in October) and services inflation edging down (4.4% vs 4.5%). On a monthly basis, core consumer prices fell 0.2%, reversing October’s 0.3% rise and posting the first decline since January.

The UK’s annual core inflation rate eased to 3.4% in October 2025 from 3.5% in the previous month, aligning with market expectations and marking the lowest level since March. Both goods inflation (2.6% vs 2.9%) and services inflation (4.5% vs 4.7%) slowed, pointing to broad-based moderation. On a monthly basis, core consumer prices rose 0.3%, rebounding from a flat reading in September.