UK Inflation Statistics 2026 — CPI 3.3% | Down From 11.1% Peak

UK CPI inflation rose to 3.3% in March 2026, according to the ONS — well above the Bank of England's 2% target.

Inflation peaked at 11.1% in October 2022 — the highest rate since 1981 — driven by energy price shocks following Russia's invasion of Ukraine.

The cumulative effect of high inflation since 2021 means the average UK household is spending approximately £3,200 more per year than before the surge.

UK inflation, measured by the Consumer Prices Index (CPI), rose to 3.3% in March 2026, according to the Office for National Statistics — up from 3.0% in February. This is above the Bank of England's 2% target, driven by higher transport costs and persistent services inflation of 4.5%.

UK inflation peaked at 11.1% in October 2022 — the highest rate since 1981 — driven by soaring energy prices following Russia's invasion of Ukraine, persistent supply chain disruption and strong post-pandemic demand. Food inflation peaked at over 19% in early 2023.

The Retail Prices Index (RPI) runs higher than CPI as it includes housing costs including mortgage interest payments. Core CPI, which excludes volatile food and energy prices, remains elevated as services inflation has proved more persistent than goods inflation.

The cumulative effect of high inflation since 2021 means UK households face significantly higher living costs. The average household is estimated to be spending around £3,200 more per year than before the inflation surge, even as the headline rate has fallen back towards target.

What is UK inflation in 2026?

UK CPI inflation stands at 3.3% as of March 2026, according to ONS — up from 3.0% in February. This is above the Bank of England's 2% target. RPI inflation is higher at 4.1%. Services inflation is running at 4.5%. Inflation peaked at 11.1% in October 2022.

Why did UK inflation get so high?

UK inflation surged from around 2% in early 2021 to 11.1% in October 2022. The main drivers were the energy price shock following Russia's invasion of Ukraine, which pushed gas and electricity bills up by over 100% for many households, post-pandemic supply chain disruption, and strong consumer demand as the economy reopened.

What is the Bank of England doing about inflation?

The Bank of England raised interest rates from a historic low of 0.1% in December 2021 to 5.25% by August 2023 in an effort to reduce inflation back to its 2% target. Rates have since been cut gradually as inflation has fallen.

What is the difference between CPI and RPI?

CPI is the official UK inflation measure used for the Bank of England's target. RPI is an older measure that includes housing costs such as mortgage interest payments and council tax. RPI consistently runs higher than CPI by around 0.5-1 percentage point.

How does UK inflation compare to other countries?

At 3.3%, UK CPI inflation in spring 2026 is above the eurozone (around 2.3%) and comparable to the USA. The UK experienced a sharper and more persistent inflation surge than most comparable economies due to greater exposure to energy price shocks.