The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. It was 6.8% in July 2023. High inflation affects the affordability of goods and services for households.
The inflation rate is falling but remains high, and it is expected to fall in 2023. Consumer goods and energy prices pushed inflation higher.