UK Core Inflation Rate Below Estimates

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.

The UK’s annual core inflation rate stood at 3.2% in February 2026, compared with market estimates and January's reading of 3.1%. Core services inflation eased slightly (4.3% vs 4.4% in January) while goods inflation held steady (at 1.6%). On a monthly basis, core consumer prices increased 0.6%, exceeding forecasts of 0.5% and reversing a 0.6% decline in January.