This page was last updated on 8 February 2018.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.7% in December 2017, down from 2.8% in November 2017.

Following a steady increase from late 2015, since April 2017 the CPIH rate has levelled off, ranging between 2.6% and 2.8%.

The downward effect came mainly from air fares, along with a fall in the prices of a range of recreational goods, particularly games and toys.

The downward contributions were partially offset by an increase in tobacco prices, reflecting duty increases that came into effect following the Autumn Budget, along with an increase in petrol and diesel prices.

The Consumer Prices Index (CPI) 12-month rate was 3.0% in December 2017, down from 3.1% in November 2017.


Consumer price indices are important indicators of how the UK economy is performing.

The indices are used in many ways by the government, businesses and society in general. They can affect interest rates, tax allowances, wages, state benefits, pensions, maintenance, contracts and many other payments. They also show the impact of inflation on family budgets.

Consumer price inflation is the rate at which the prices of the goods and services bought by households rise or fall; it is estimated by using consumer price indices. One way to understand a price index is to think of a very large shopping basket containing all the goods and services bought by households. The price index estimates changes to the total cost of this basket. Most Office for National Statistics (ONS) price indices are published monthly.

The Retail Prices Index (RPI) – a long-standing measure of UK inflation – and its derivatives do not meet the required standard for designation as National Statistics. The RPI, its subcomponents and the RPIX continue to be published as they are tied to long-term contracts.