UK CPI Inflation — The Crisis in One Chart (2019–2026)
CPI Inflation % (annual)
BoE 2% Target
Real Wage Growth %
🚨 The annual rate of inflation peaked at 11.1% in October 2022 — a 41-year high — before easing over the subsequent 18 months. During the worst period, 91% of adults in Great Britain reported a higher cost of living than the previous month. Real wages fell for two consecutive years — the sharpest drop in recorded UK history.
What Things Actually Cost — 2020 vs 2026
Item
2020
2026
Change
Annual energy bill
£1,042
£1,568
+51%
4 pints of milk
£1.09
£1.55
+42%
800g sliced bread
£0.89
£1.35
+52%
250g butter
£1.15
£1.85
+61%
6 free range eggs
£1.49
£2.85
+91%
Whole chicken (1.4kg)
£3.50
£4.80
+37%
200g instant coffee
£2.49
£4.20
+69%
Average bus fare
£1.85
£2.50
+35%
Avg London rent (1-bed)
£1,580/mo
£2,180/mo
+38%
Avg UK rent (1-bed)
£750/mo
£1,020/mo
+36%
Litre of petrol
£1.10
£1.34
+22%
Mobile contract (avg)
£19/mo
£28/mo
+47%
Haircut (avg)
£18
£28
+56%
Pint of lager (pub)
£3.80
£5.20
+37%
⚠️ Energy bills peaked at £3,549/year in early 2023 before settling around £1,560/year in 2025 — still 20% above pre-crisis levels. Food prices rose approximately 25% in total between early 2022 and 2025.
Ofgem Energy Price Cap — Annual Household Bill 2019–2026
⚠️ The energy price cap rose from £1,042 in 2020 to a peak of £3,549 in Q1 2023. The Government's Energy Price Guarantee capped bills at £2,500 for most of 2023, costing £37bn in taxpayer subsidies. Bills have since fallen but remain ~20% above pre-crisis levels. Over 6.5 million households are in fuel poverty.
Real Wages vs Inflation — The Squeeze & Partial Recovery
CPI Inflation %
Nominal Wage Growth %
Real Wage Growth % (wage minus CPI)
📋 In April 2026, 21% of adults in Great Britain said they had to borrow more money or use more credit than usual in the last month. 23% said they would not be able to afford an unexpected but necessary expense of £850. The partial recovery in real wages since 2023 has not fully reversed the losses of 2022–23.
The Human Cost — Food Banks, Debt & Financial Distress
2.6m
Emergency food parcels distributed by Trussell in 2025 — down 12% from 2024 peak as inflation eased
6.5m
Households in fuel poverty — unable to heat their home adequately
126k
Personal insolvencies in 2025 — highest since 2010
24%
Adults finding it difficult to cope financially (FCA May 2024) — down from 36% in Jan 2023
23%
Adults unable to cover an unexpected £850 expense
79%
Adults reporting higher costs of living in April 2026 vs previous month
🚨 The legacy of the crisis: Even as inflation has fallen back, the damage is permanent — prices don't reverse. A household basket that cost £400/month in 2020 now costs ~£520. The extra £120/month compounds year after year. For the bottom 40% of earners, who spend a much higher share of income on essentials, the real living standard loss is severe and ongoing.