Five charts that explain the high cost of living in the UK

On hearing that new Prime Minister Andy Burnham will be embarking on a monthlong “cost of living” tour across the United Kingdom, one user of the social media chat platform Reddit commented: “Housing is too expensive, energy is too expensive, food is too expensive etc. There you go, Andy, I’ve saved you some fuel (very expensive).”

Like much of the world, the UK is grappling with the rising cost of living. The Bank of England expects inflation to climb further in the second half of the year as the fallout from the United States-Israel war on Iran pushes up energy prices and household bills.

How high is inflation in the UK? Who is hardest hit? And how does it compare with other countries?

The annual rate of inflation in June was 2.8 percent, down from 3 percent in May. That means prices are still rising, but they are going up a bit more slowly than they were earlier in the year. In practical terms, if something cost 100 pounds (about $135) in June last year, that same item now costs 102.80 pounds ($138.65).

Before the US and Israel attacked Iran on February 28, the Bank of England had forecast that inflation as measured by the Consumer Prices Index (CPI) would fall from 3.4 percent in 2025 to 2.3 percent in 2026. Instead, inflation was again 3.4 percent in March this year, largely driven by higher fuel and heating costs.

The closure of the Strait of Hormuz, a route for about one-fifth of the world’s oil and liquefied natural gas (LNG) supplies, has pushed up the cost of petrol, transport, food and other goods.

Petrol prices in the UK have hit a three-and-a-half- year high. According to data from the RAC Foundation, the price of petrol and diesel rose by 22 percent and 27 percent, respectively, between February 25 and August 11.

The average price of a litre (about a quarter of a gallon) of petrol increased from 1.32 pounds ($1.78) to 1.61 pounds ($2.17) while diesel rose from 1.42 pounds ($1.92) to 1.81 pounds ($2.44) per litre.