UK Inflation Rate: Latest CPI Data and What It Means
The latest confirmed UK CPI inflation rate was 2.9% in the 12 months to July 2026. That was up from 2.6% in June. This page uses the Office for National Statistics release published on 19 August 2026, rather than presenting an older figure as today’s rate. UK inflation: the latest confirmed figures Measure Latest figure…
The latest confirmed UK CPI inflation rate was 2.9% in the 12 months to July 2026. That was up from 2.6% in June. This page uses the Office for National Statistics release published on 19 August 2026, rather than presenting an older figure as today’s rate.
UK inflation: the latest confirmed figures
| Measure | Latest figure | Data period |
|---|---|---|
| CPI annual rate | 2.9% | 12 months to July 2026 |
| Previous CPI annual rate | 2.6% | 12 months to June 2026 |
| CPIH annual rate | 3.1% | 12 months to July 2026 |
CPI measures the change in the price of a basket of goods and services bought by households. An annual rate of 2.9% means that the basket used for the index was, on average, 2.9% more expensive than it was a year earlier. It does not mean every household experienced exactly the same increase.
What pushed the July figure higher?
ONS reported that housing and household services, particularly gas and electricity following changes to the Ofgem price cap, and furniture made the largest upward contributions to the monthly change. Transport partly offset that pressure, with motor fuels and air fares among the downward influences.
Confirmed data, forecasts and commentary
The 2.9% CPI figure is confirmed historical data for July 2026. Forecasts about future inflation are estimates, not results. Commentary about what inflation might mean for interest rates or household budgets should therefore be treated separately from the ONS data.
How inflation affects households
When prices rise, a household that buys the same goods and services may need a larger budget. The effect varies: someone spending more on energy, rent or food may feel a different change from someone whose largest costs are fixed. Comparing regular bills, checking renewal prices and keeping a realistic spending plan can help identify where the pressure is greatest.
What inflation can mean for interest rates, mortgages and savings
The Bank of England considers inflation alongside employment, demand and other economic information when setting Bank Rate. A higher-than-target inflation rate can influence expectations about future rates, but one CPI release does not determine the next decision.
Mortgage borrowers on tracker or other variable rates may see payments affected when rates change, while fixed-rate borrowers are generally protected until their deal ends. Anyone reviewing a mortgage should check the actual terms and costs rather than relying on an inflation headline. Our mortgage calculator can help with estimates, not lender decisions.
Savings rates may also change as banks respond to interest-rate conditions. The return on a savings account should be compared with the account’s access rules, tax treatment and the effect of inflation on purchasing power. See our UK savings accounts guide for related information.
What to watch next
The next scheduled ONS consumer price inflation release after the July bulletin is due on 16 September 2026. Until that release, the July figure remains the latest confirmed CPI data used in this article.
Sources and review date
This article was last reviewed on 2 September 2026. The data cut-off is the ONS Consumer price inflation, UK: July 2026 release published on 19 August 2026. Read the ONS statistical bulletin, the ONS inflation and price indices page and the Bank of England inflation explanation.
