While the retail price index is still a popular method of calculating inflation, the consumer price index (CPI) is the current main measurement of inflation in the UK. There is also an additional price index, which includes some extra housing costs, known as the Consumer Price Index including homer occupiers’ costs (CPIH) index, which is seen by the UK’s Office of National Statistics as the official inflation rate. As of December 2024, the CPI inflation rate stood at 2.5 percent, while the CPIH rate was 3.5 percent. Since 1999 Wales has had a devolved national government and legislature, known as the Senedd. It has more limited powers than those devolved to Scotland.224 The Senedd can legislate on any matter not specifically reserved to the UK Parliament by Acts of Senedd Cymru.
- Most of Ireland seceded from the UK in 1922 as the Irish Free State, and the Royal and Parliamentary Titles Act 1927 created the present United Kingdom.
- Unfortunately for Reeves, the UK economy, the world’s sixth-largest, isn’t doing as well as she hoped, with many critics blaming her decision last year to slap taxes on business.
- England, occupying most of southern Great Britain, includes the Isles of Scilly off the southwest coast and the Isle of Wight off the southern coast.
- The budget followed weeks of messy mixed messaging and political acrimony that continued into the minutes before Reeves stood in the House of Commons.
- The course of the 700-foot (213-metre) contour, or of the boundary separating the older rocks of the north and west from the younger southeastern strata, provides a more accurate indication of the extent of the highlands.
Discover annual events
This statistic is using original data from the Office for National Statistics and includes copyright material from © Crown, licensed under the Open Government License v3.0. The north of England has many mountains and lakes, like Windermere, the largest lake in England. A dynamic port city with a colourful past, Belfast is a vibrant cultural hub on Northern Ireland’s eastern coast. A quirky seaside city filled with diverse cuisine, vintage shopping and adrenaline-fuelled adventure.
Meanwhile, Reeves has a bunch of spending commitments aimed at easing the cost of living as inflation remains stubbornly high, including making up for a series of about-faces on planned welfare cuts. Overall, the budget was strikingly similar to Reeves’ first budget a little more than a year ago, even though she insisted at the time that it would be the one and only big tax-raising budget in this parliamentary term, due to run to 2029. UK Visas and Immigration (UKVI) is responsible for making millions of decisions every year about who has the right to visit or stay in the country, with a firm emphasis on national security and a culture of customer satisfaction for people who come here legally. England, Wales and Scotland each have their own national symbols, including their national flags. Northern Ireland also has symbols, many of which are shared with the Republic of Ireland. Although the Retail Price Index is a commonly utilized inflation indicator, the UK also uses a newer method of calculating inflation, the Consumer Price Index.
Other statistics on the topicThe UK economy
There also still exists a noticeable gender pay gap in the UK, which was seven percent for full-time workers in 2024, down from 7.5 percent in 2023. Lastly, the monthly earnings of the top one percent in the UK was 15,887 pounds as of November 2024, far higher than even that of the average for the top five percent, who earned 7,641 pounds per month, while pay for the lowest 10 percent of earners was just 805 pounds per month. On November 4, Reeves made a speech to prepare the public and markets for a hike in income tax rates, which would break a key election promise. After an outcry among Labour lawmakers, and a better-than-expected update on public finances, she reversed course, opting for a smorgasbord of smaller revenue-raising measures.
Starmer defends tax-raising Budget, saying it will lift hundreds of thousands of children out of poverty
Between 2021 and 2023, inflation surged in the UK, reaching a 41-year-high of 11.1 percent in October 2022. Although inflation fell to more usual levels by 2024, prices in the UK had already increased by over 20 percent relative to the start of the crisis. The two main drivers of price increases during this time were food and energy inflation, two of the main spending areas of UK households. Although food and energy prices came down quite sharply in 2023, underlying core inflation, which measures prices rises without food and energy, non gamstop casinos remained slightly above the headline inflation rate throughout 2024, suggesting some aspects of inflation had become embedded in the UK economy. The UK’s high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic.
The peoples who, over the centuries, have hewed an existence from this Atlantic extremity of Eurasia have put their own imprint on the environment, and the ancient and distinctive palimpsest of their field patterns and settlements complements the natural diversity. The next election doesn’t have to be held until 2029, and the government continues to hope that its economic measures will spur higher growth and ease financial pressures. The budget is a high-stakes moment for Reeves and Prime Minister Keir Starmer, who is facing mounting concern from Labour lawmakers over his dire poll ratings. Opinion polls consistently put Labour well behind the hard-right Reform UK party led by Nigel Farage.
England’s highest mountain is Scafell Pike, at 978 metres (3,209 ft) in the Lake District; its largest island is the Isle of Wight. The UK inflation rate was 3.6 percent in October 2025, down from 3.8 percent in the previous two months, which was the fastest rate of inflation since January 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years.
Despite having one of the highest levels of income inequality in the OECD,268269 the UK has a very high HDI ranking, including when adjusted for inequality. As of 2025 the UK unemployment rate is 4.7%,270 which is moderately low by European standards. The United Kingdom has made significant contributions to the world economy, especially in technology and industry.