There’s more to inflation than just the headline figurepublished at 06:40 GMT
Mitchell Labiak
Business reporter
Today’s inflation figure will tell us how fast prices have risen over the past year, but it doesn’t tell us the whole story.
First, inflation is an average, with the prices of some things rising faster than others. For example, while the inflation figure for the year to December was 3.4%, a closer look at the data shows food prices, service prices, and the costs of running your own home all rose faster than that.
Second, consider how much prices have risen not in the past year but since 2021. According to the Bank of England’s inflation calculator, external, what cost £10 back then would cost £12.54 in December 2025 — a 25.4% increase. Not everyone’s pay will have risen at the same rate.
