United Kingdom Inflation Rate1989-2020 Data | 2021-2022 Forecast | Calendar

Annual inflation rate in the United Kingdom slowed sharply to 0.2 percent in August of 2020 from 1 percent in July, compared to forecasts of a flat reading. It is the lowest reading since December of 2015, amid a big fall in prices in restaurants and cafes, arising from the Eat Out to Help Out Scheme (-2.8 percent vs +1.8 percent in July). Other downward contributions came from lower air fares (-20.6 percent vs -1.9 percent) and clothing prices (-1.6 percent vs a flat reading). The largest, partially offsetting, upward contributions came from games, toys and hobbies (3.8 percent vs 1.6 percent); accommodation services (-1.8 percent vs -3.8 percent); road transport services (9.8 percent vs 5 percent) and second-hand cars (5.2 percent vs 2.5 percent). On a monthly basis, consumer prices fell 0.4 percent, the biggest drop since January of 2019.

Annual inflation rate in the UK jumped to 1% in July of 2020 from 0.6% in June, beating market forecasts of 0.6%. It is the highest reading since March, as the restrictions caused by the coronavirus pandemic have been eased. The largest contributions came clothing (-0.1% vs -2.2%), rising prices at the petrol pump (transportation prices were down 0.7% vs -1.6% in June), and furniture and household goods (0.8% vs -0.5%), namely single beds and bath sheets. In contrast, food inflation slowed (0.8% vs 1.1%), mainly due to fruit, vegetables (including potatoes and tubers), fish, meat, and milk, cheese and eggs. On a monthly basis, consumer prices went up 0.4%, after a 0.1% rise and beating forecasts of a 0.1% fall.

Annual inflation rate in the United Kingdom edged up to 0.6 percent in June of 2020 from a 4-year low of 0.5 percent in May and beating market forecasts of 0.4 percent. Main upward contributions came from cost of recreation and culture (2.6 percent), namely computer games and computer games consoles, with the coronavirus lockdown changing the timing of demand and availability of such products. The UK allowed non-essential shops to reopen on June 15th. Other upward pressure also came from cost of clothing and footwear (-2.2 percent), possibly reflecting how retailers cut prices earlier than usual this year to shift goods during the lockdown; and health (2.1 percent). The largest, partially offsetting, downward contribution came from cost of food (1 percent), namely vegetables. On a monthly basis, prices were up 0.1 percent after a flat reading in May. Annual core inflation which excludes cost of energy, food, alcoholic beverages increased to 1.4 percent from 1.2 percent.

Britain's consumer price inflation dropped to 0.5 percent year-on-year in May, from 0.8 percent in the previous month and in line with market expectations. That was the lowest rate since June 2016, as the coronavirus pandemic hit demand and oil prices. There was a sharp decline in prices for transport (-1.7 percent vs -1.0 percent) in particular motor fuels (-16.7 percent vs -12.2 percent) and a slowdown in cost for a variety of recreational and cultural goods (2.0 percent vs 2.6 percent), restaurants and hotels (2.0 percent vs 2.4 percent) and miscellaneous goods and services (1.1 percent vs 1.3 percent). Additional downward pressure came from housing and utilities (-1.2 percent vs -1.1 percent) amid reduced household utility bills, and clothing and footwear (-3.1 percent vs -2.9 percent). At the same time, rising prices for food and non-alcoholic drinks resulted in a partially offsetting upward contribution to change (1.8 percent vs 1.3 percent).