UK inflation rate today
UK consumer prices were 3.1% higher in August 2026 than a year earlier, according to the Office for National Statistics. Bank Rate is 3.75%, a real rate of +0.65 points before tax.
- UK inflation (CPI) 3.1% 12 months to Aug 2026
- Cash loses half its value in 23 years At this inflation rate, earning nothing
- Bank Rate 3.75% Bank of England
- Real rate on savings +0.65% Bank Rate minus CPI
The latest UK figures
From the ONS and the Bank of England, via our weekly history refresh. The figures at the top of the page update within minutes of each release.
| Measure | Latest | Month before | A year earlier |
|---|---|---|---|
| CPI inflation, 12 monthsONS | 3.1% Aug 2026 | 2.8% Jul 2026 | 3.7% Aug 2025 |
| Bank RateMonthly average | 3.75% Sep 2026 | 3.75% Aug 2026 | 4.00% Sep 2025 |
| Real interest rateBank Rate minus CPI | +0.66 pts Aug 2026 | +0.94 pts Jul 2026 | +0.33 pts Aug 2025 |
In short
- CPI inflation was 3.1% in August 2026, 1.1 points above the Bank of England's 2% target.
- An account paying the full Bank Rate of 3.75% is ahead of inflation by 0.65 points. Most easy-access accounts pay less.
- Cash earning Bank Rate since March 2009 grew 27% while prices rose 67%.
- £1 from 2000 needs to be £1.98 today to buy the same things.
UK inflation history
UK inflation since 1948, 12-month rate
| Decade | Average a year | Highest 12-month rate | Lowest 12-month rate |
|---|---|---|---|
| 1950s | 4.1% | 13.0% Jan 1952 | −0.8% Jun 1959 |
| 1960s | 3.7% | 6.3% Feb 1969 | −0.4% Mar 1960 |
| 1970s | 13.1% | 26.9% Aug 1975 | 4.9% Feb 1970 |
| 1980s | 6.5% | 21.9% May 1980 | 2.4% Jul 1986 |
| 1990s | 3.1% | 8.5% Apr 1991 | 1.1% Dec 1999 |
| 2000s | 1.9% | 5.1% Sep 2008 | 0.6% May 2000 |
| 2010s | 2.1% | 5.1% Sep 2011 | −0.2% Apr 2015 |
| 2020sto Aug 2026 | 4.3% | 11.1% Oct 2022 | 0.2% Aug 2020 |
Average yearly rise in prices for each decade, from the December before to the last December (or the latest month). The fastest decade was the 1970s, at 13.1% a year, when £100 lost about 71% of its buying power.
Bank of England rate and the real interest rate
The real rate here is the Bank Rate minus inflation over the previous 12 months: a quick test of whether cash at the policy rate keeps its buying power.
Bank Rate and inflation since 1975
- Bank Rate
- CPI inflation
UK real interest rate since 1975
Cash savings against UK prices
£1 left earning the full Bank Rate, with interest added monthly, against the rise in UK consumer prices over the same months. Most easy-access accounts paid less than Bank Rate, so real savers did worse than this.
| Period | Cash at Bank Rate | Prices | Buying power |
|---|---|---|---|
| Since Jan 2000 | +93.6% | +99.7% | −3.1% lost |
| Since Mar 2009 | +26.8% | +67.4% | −24.3% lost |
| Since Jan 2020 | +20.0% | +32.7% | −9.6% lost |
Savings versus inflation calculator
What will cash in a savings account be worth in today's money? The defaults use the latest UK CPI figure and a savings rate half a point below Bank Rate.
The result is before tax and assumes interest is added once a year at the same rate throughout, which won't happen in practice.
What the pound has lost
Average prices in each year against August 2026.
| Year | £1 then in today's money | Today's £1 buys | Buying power lost |
|---|---|---|---|
| 1948RPI-based | £38.83 | 2.6p | 97% |
| 1960RPI-based | £24.61 | 4.1p | 96% |
| 1970RPI-based | £16.54 | 6.0p | 94% |
| 1980RPI-based | £4.59 | 21.8p | 78% |
| 1990 | £2.57 | 38.9p | 61% |
| 2000 | £1.98 | 50.6p | 49% |
| 2010 | £1.61 | 62.3p | 38% |
| 2020 | £1.32 | 75.7p | 24% |
Try your own amount
The inflation calculator works this out for any amount and any month, against US prices, UK prices or the US money supply.
Prices are only half the story. The M2 money supply page shows how much faster the number of dollars has grown, and real returns shows what that did to shares, gold and crypto.
Next UK release dates
Dates come from the official calendars. Times are UK time.
| Release | Date |
|---|---|
| UK inflation figuresSeptember 2026 figures, 7am UK time | 21 Oct 2026 07:00 BST UK time |
| Bank of England rate decisionMonetary Policy Committee announcement, 12 noon UK time | 5 Nov 2026 12:00 GMT UK time |
| UK inflation figuresOctober 2026 figures, 7am UK time | 18 Nov 2026 07:00 GMT UK time |
| UK inflation figuresNovember 2026 figures, 7am UK time | 16 Dec 2026 07:00 GMT UK time |
| Bank of England rate decisionMonetary Policy Committee announcement, 12 noon UK time | 17 Dec 2026 12:00 GMT UK time |
UK inflation terms explained
- CPI 3.1%
- The consumer prices index, the ONS measure the Bank of England's 2% target is set on. It tracks a basket of about 700 goods and services.
- CPIH
- CPI plus owner-occupiers’ housing costs and council tax. The ONS treats it as its lead measure, but the inflation target and most news reports use CPI.
- RPI
- The older retail prices index. It includes mortgage interest and uses a formula that tends to run higher than CPI. It still sets some student loan rates and index-linked gilts.
- Bank Rate 3.75%
- The Bank of England's policy rate, set by the Monetary Policy Committee eight times a year. Banks price savings and mortgage rates with it in mind.
UK inflation questions
Answers update when the ONS and the Bank of England publish new numbers.
What is the UK inflation rate now?
The Office for National Statistics put the 12-month CPI inflation rate at 3.1% for August 2026, up from 2.9% the month before. The Bank of England is asked to keep this measure at 2%, so the latest figure is 1.1 points above target. The September 2026 figure comes out on 21 Oct 2026 at 7am, and we show it the same morning.
What is the Bank of England interest rate?
Bank Rate, the rate the Bank of England pays on reserves held by commercial banks, is 3.75%. The Monetary Policy Committee's next decision is on 5 Nov 2026. Lenders and banks set mortgage and savings rates with it in mind, but they do not have to move by the same amount or at the same time, and easy-access savings rates usually sit well below it.
What is the real interest rate on savings in the UK?
Taking Bank Rate as the best rate a saver could hope for, 3.75% minus 3.1% CPI inflation leaves +0.65 points. That is the best case: an account paying less than Bank Rate, or interest taxed above the personal savings allowance, can still lose ground.
Over a longer run the picture is clearer. £1,000 earning Bank Rate from March 2009 would have grown to about £1,268 by August 2026, while prices rose 67%. In today's money that is a loss of 24%.
Why are the UK figures before 1989 based on RPI?
The ONS consumer prices index only goes back to January 1988 as a published index, so 12-month CPI rates start in January 1989. For earlier years we join the ONS long-run retail prices index (RPI), which runs monthly from June 1947, at the point the two meet. RPI has usually run above CPI, partly because of the way it averages prices and partly because it includes mortgage interest, so UK inflation before 1989 on this page is likely to be a little higher than a CPI measure would have shown.
What was the highest UK inflation rate?
On the long-run RPI the 12-month rate peaked at 26.9% in August 1975, after the 1973 oil shock. Since the CPI series began the highest reading was 11.1% in October 2022, when energy bills jumped after Russia invaded Ukraine.
Important information
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