The fastest price rises in 40 years
In October 2022, CPIH — the broadest measure of UK inflation — hit its highest level since the early 1980s. Energy bills doubled, food prices surged, and the cost of almost everything jumped.
A decade of calm, then a shock
For most of the 2010s, inflation hovered around the Bank of England’s 2% target. Then came the pandemic, supply-chain chaos, and the energy crisis triggered by Russia’s invasion of Ukraine.
Food led the charge
Food & drink prices rose faster than almost any other category, peaking at over 19% year-on-year in early 2023. Supply disruption, fertiliser costs, and the weak pound all played a role.
Energy: the invisible tax
Housing, water, electricity & gas spiked sharply when the energy price cap rose in April and October 2022. Transport costs — driven by fuel — surged even earlier.
Prices don’t come back down
When inflation falls, it means prices are rising more slowly — not that they are falling. The price level is permanently higher.
Food hit hardest
These are the essentials that lower-income households spend the largest share of their budgets on.
Back towards target — but not quite
The headline CPIH rate has fallen sharply from its peak. But it remains above the 2% target, and some categories — particularly food — continue to run hot.
The damage is done
Even if inflation returns to 2% tomorrow, the price level will not reset. The squeeze on living standards is baked in.