The UK’s annual inflation rate rose to 2.9% in July 2026, the highest in four months, from 2.6% in June and in line with market expectations. The largest upward contribution came from housing and household services (4.1% vs 2.7% in June), reflecting the 13% hike in Ofgem’s energy price cap that took effect last month. Gas prices surged 14.7%, the biggest increase since October 2022, while electricity prices rose 3.6%. Prices also rebounded for furniture and household goods (1.0% vs -0.2%) and clothing and footwear (0.5% vs -0.5%), while inflation increased for alcohol and tobacco (2.5% vs 2.1%) and health (3.7% vs 2.5%). Meanwhile, transport inflation slowed (3.6% vs 5.7%) due to lower motor fuel prices, particularly diesel. The average price of diesel fell by 8.8 pence per litre between June and July 2026. Food inflation also eased to 1.3% from 1.7%. On a monthly basis, CPI inflation increased 0.3%, matching market forecasts and following a 0.1% rise in June. source: Office for National Statistics
Inflation Rate in the United Kingdom increased to 2.90 percent in July from 2.60 percent in June of 2026. Inflation Rate in the United Kingdom averaged 2.84 percent from 1989 until 2026, reaching an all time high of 11.10 percent in October of 2022 and a record low of -0.10 percent in April of 2015. This page provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. United Kingdom Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2026.
Inflation Rate in the United Kingdom increased to 2.90 percent in July from 2.60 percent in June of 2026. Inflation Rate in the United Kingdom is expected to be 3.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United Kingdom Inflation Rate is projected to trend around 2.50 percent in 2027 and 2.20 percent in 2028, according to our econometric models.