The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 3.0% in the 12 months to April 2026, down from 3.4% in the 12 months to March. This is a significant drop, but it's important to note that it's still above the target rate. On a monthly basis, CPIH rose by 0.8%, which is a slight increase from the previous month's 1.2% rise. The Consumer Prices Index (CPI) also rose by 2.8% in the 12 months to April 2026, down from 3.3% in the previous month. This is a positive sign, as it suggests that inflation is slowing down, but it's still above the target rate. The main drivers of the annual inflation rate for CPIH and CPI are the same, with housing and household services making the largest downward contribution. However, the owner occupiers' housing (OOH) costs component accounts for approximately 18% of the CPIH and is the main driver for differences between the CPIH and CPI inflation rates. This makes CPIH our most comprehensive measure of inflation. The notable movements in prices include a rise in food and non-alcoholic beverages, clothing and footwear, transport, communication, recreation and culture, education, restaurants and hotels, and miscellaneous goods and services. The largest upward effect came from garments for men, women and children, footwear, and motor fuels. The largest downward effect came from package holidays, computer game downloads, and air fares. The core CPIH annual inflation rate was 2.8% in April 2026, down from 3.3% in March. The rate was last lower in September 2021. The CPIH all-goods index rose by 2.4% in the 12 months to April 2026, up from 2.1% in the previous month. The CPIH all-services index rose by 3.4% in the 12 months to April 2026, down from 4.3% in the previous month. The largest downward contribution to the change in the annual rate came from travel and transport services, particularly Vehicle Excise Duty. The largest, partially offsetting, upward effect came from communication. The largest positive contribution to the CPIH annual inflation rate came from housing and household services, which has made the largest contribution for the last 22 months. The contribution from food and non-alcoholic beverages was the lowest since December 2024. All divisions made a positive contribution, with the clothing and footwear, and furniture and household goods divisions changing from providing a negative contribution last month, to a positive contribution to the CPIH annual rate in April 2026. The annual contribution from OOH costs continued to slow and was 0.61 percentage points in April 2026. This contribution was last lower in July 2022, when it was 0.60 percentage points. The contribution has decreased for 15 consecutive months from a recent high of 1.31 percentage points in January 2025. The UK's CPI inflation rate of 2.8% was lower than the first (or 'flash') estimate of inflation for Germany (2.9%) but higher than that for France (2.5%) in April 2026. This is the first month since December 2024 that the UK’s rate of inflation has been below that of Germany. The Consumer Prices Index including owner occupiers' housing costs (CPIH) is the most comprehensive measure of inflation, extending the Consumer Prices Index (CPI) to include a measure of the costs associated with owning, maintaining and living in one's own home, known as owner occupiers' housing (OOH) costs, along with Council Tax. Both are substantial expenses for many households and are not included in the CPI. The CPI is a measure of consumer price inflation produced to international standards, and is based on European regulations for the Harmonised Index of Consumer Prices. The CPI is the inflation measure used in the government's target for inflation. The HCIs are official statistics in development and reflect how different types of households experience changing prices. The RPI and its subcomponents do not meet the required standard for designation as accredited official statistics. The UK Statistics Authority and HM Treasury launched a consultation in 2020 on The Authority's proposal to address the shortcomings of the RPI. From 2030 (at the earliest), the CPIH methods and data sources will be introduced into the RPI. Additionally, the supplementary and lower-level indices of the RPI will be discontinued.
