Inflation in the United Kingdom has risen sharply over the last few years. This made it rise from only 0.1% at the beginning of January 2021 to 3.2% by November 2025. This continuing upward trend is a warning sign about the continued unsustainable rise of health spending for consumers and policymakers. The Office for National Statistics (ONS) has been vital in measuring those changes. This has helped us understand the underlying reasons for inflation and how it affects our economy.
The most recent figures from the ONS confirm that the inflation rate climbed back to 3.6% in October 2025. Yet this figure masks and exacerbates the ongoing Tory cost-of-living crisis facing British households. The COP report cites the inflation rate falling to 2.7% in the 12 months ending in November. This insignificant change is yet another indication of the volatility seeping into price patterns. Indeed, the ONS announced that food and non-alcoholic drinks had a particularly strong 4.2% price hike over this period. This surge was a considerable factor accounting for the overall inflation rate.
Recent news has focused on unemployment rates. The current statistics reveal that the UK unemployment rate increased to 5.1% for the three months to October from 5% in September. This modest increase has major implications for our labor market’s resilience in the face of increasing prices and inflation.
The Consumer Prices Index (CPI)—the UK government’s main measure of inflation— is published by the ONS on a monthly basis. The CPI measures the price for hundreds of common items, including sensitive categories like food and fuel. After months of worsening inflationary pressures, November consumers had more reasons to celebrate. Decreased prices for hotel lodging and restaurant meals contributed to a cooling of the inflation rate.
In reaction to these pro-inflationary pressures, the Bank of England has had to enact quite extreme measures to steady the economy. The central bank raised interest rates to 5.25%, marking a 16-year high, as inflation soared well above its target of 2%. Beginning in August, the central bank cut rates six times. In response, rates have been increased to 3.75%, demonstrating a focus on sustaining longer term growth and stability without inflationary pressures.
Inflation rates across the country have done some fascinating things. In November eurozone countries’ inflation was at 2.1%. This figure is a dramatic contrast to the UK’s much higher inflation. The gap reveals stark contrasts in driving conditions and consumer experiences across the country.
The Core CPI, which strips out more unstable categories such as food and energy, registered at 3.2% over the past year through November. That’s a dip from the 3.4% rate we saw in October. That reduction indicates that even though total inflation is still high, some areas of the economy are beginning to see moderation in inflationary pressures.
As consumers are forced to deal with increased prices associated with these challenges, it is crucial to understand what is causing the increase in prices. ONS has been exceptionally vigilant and transparent in publishing extremely useful data on price movements across every category. This new, objective information brings the power of sunlight to shepherd stakeholders toward consensus solutions.