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| Year | Inflation rate forecast, in % |
|---|---|
| 2028 | 2.0 |
| 2027 | 1.7 |
| 2026 | 1.4 |
| 2025 | 1.8 |
| 2024 | 3.6 |
| 2023 | 7.5 |
| 2022 | 9.1 |
| 2021 | 2.6 |
| 2020 | 0.9 |
| 2019 | 1.8 |
| 2018 | 2.5 |
| 2017 | 2.7 |
| 2016 | 0.7 |
| 2015 | 0.0 |
| 2014 | 1.5 |
| 2013 | 2.6 |
| 2012 | 2.8 |
| 2011 | 4.5 |
| 2010 | 3.3 |
| 2009 | 2.2 |
| 2008 | 3.6 |
| 2007 | 2.3 |
| 2006 | 2.3 |
| 2005 | 2.1 |
| 2004 | 1.3 |
| 2003 | 1.4 |
| 2002 | 1.3 |
| 2001 | 1.2 |
| 2000 | 0.8 |
- Source: Office for Budget Responsibility; Office for National Statistics - CPI annual inflation rate
- Region: United Kingdom
- Time period: 2000 to 2028
- Published: Nov 2023
Data Analysis and Insights
Highest Inflation Rate in 2022
The year 2022 experienced the highest inflation rate at 9.1%, marking a significant peak compared to the surrounding years.Projected Decrease in Inflation Rate
Inflation rate forecasts indicate a decreasing trend, with a projection of 1.4% by 2026 and further reducing to 2.0% by 2028.Lowest Inflation Rate in 2015
2015 saw the lowest inflation rate at 0.0%, indicating a year of price stability within the UK.Recent Spike in Inflation Post-2020
After a low of 0.9% in 2020, there was a sharp increase to 7.5% by 2023, illustrating a rapid inflationary period following the pandemic year.Early 2000s Inflation Consistency
From 2000 to 2004, inflation rates were consistently low, averaging around 1.2%, demonstrating a period of economic stability.Inflation Peaks and Troughs
The data reveals distinct inflation peaks in 2011 and 2022 at 4.5% and 9.1%, respectively, with significant troughs in 2015 and 2000 at 0.0% and 0.8%, highlighting the volatility in the UK's inflation rate over the years.Decade of Inflation Reduction Post-2011
Following a peak in 2011, the inflation rate demonstrated a decade-long decrease, hitting a low of 0.0% in 2015, indicating a period of deflationary pressure recovery.Frequently Asked Questions
What was the highest inflation rate in UK in recent years?
In 2022, UK experienced its highest inflation rate of 9.1%.
What is the projected trend for the inflation rate in UK?
The inflation rate in UK is forecasted to decrease to 1.4% by 2026 and further to 2.0% by 2028.
When was the lowest inflation rate recorded recently?
The lowest inflation rate was 0.0% recorded in 2015.
Was there a significant change in inflation rate post 2020?
Yes, after a low of 0.9% in 2020, the inflation rate spiked to 7.5% by 2023.
Terms and Definitions
Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. When the inflation rate is high, the cost of goods and services increases, and the value of money declines.
CPI stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, including transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket and averaging them.
The annual inflation rate is the percentage change in the price level from one year to the next in an economy. It is typically measured by the Consumer Price Index (CPI). A positive annual inflation rate reflects that the prices of goods and services have increased over the year, while a negative rate indicates deflation.
The CPI inflation rate is the percentage change in the consumer price index over a particular period. It indicates how much the average price of a basket of selected goods and services has increased or decreased in that period.
The annual CPI inflation rate is the percentage change in the consumer price index over a period of one year, reflecting how much the average price of a basket of selected goods and services has increased or decreased over that year.
Deflation is a general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit in the economy. During deflation, the purchasing power of currency rises over time.
Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Inflation erodes and deflation increases the purchasing power of money. It reflects how much can be bought with money in an economy.
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