Prices rose 3.1% in the year to August 2026
Inflation is how fast prices are rising. When the rate falls, prices are still rising, just more slowly. Here is the latest figure, how it compares with the 2% target, what it means for your money and pay, and when the next figures are due.
A year earlier, in August 2025, it was 3.8%.
months in the last year were above 2%. The government asks the Bank of England to keep inflation at 2%. This does not say whether the target is right.
in October 2022. The series starts in 1989. The rate has fallen since, but prices are still higher than they were.
Inflation over time
What’s this?
How much prices rose over the previous twelve months, measured by the Consumer Prices Index (CPI). A rate above zero means prices are rising.
What it cannot tell you: It is an average. Your own prices may have risen faster or slower, for example if you rent or drive a lot.
What it means for you
is what £100 from 2000 would need to be today to buy the same. Try your own amount →
Typical full-time pay rose 96% in cash terms. Prices rose 86% over the same years. See pay in today’s prices →
The rate is an average across what typical households buy. If you rent, drive a lot or heat a large home, your own rise could be higher or lower.
How it is measured
The Office for National Statistics tracks the prices of a basket of goods and services that typical households buy, such as food, rent, fuel and haircuts. Inflation is how much the basket costs now compared with the same month a year ago. The measure is called the Consumer Prices Index, or CPI.
Average rate by year
| Year | Average of the twelve monthly rates |
|---|---|
| 2025 | 3.4% |
| 2024 | 2.5% |
| 2023 | 7.4% |
| 2022 | 9.0% |
| 2021 | 2.6% |
| 2020 | 0.8% |
| 2019 | 1.8% |
| 2018 | 2.5% |
| 2017 | 2.7% |
| 2016 | 0.7% |
How does this compare with other countries?
Prices rose 3.4% on average in 2025, the 2nd highest of 16 economies. The IMF counts the whole year, so this differs from the monthly figure above.
Compare inflation, growth, borrowing and debt across 16 countries → Source: IMF.
Source: ONS, Consumer Price Index; typical pay from ONS (Annual Survey of Hours and Earnings). Latest month August 2026. See also everything over time and how we calculate this.