Cost Of Living Latest Insights

16th August 2023

The latest data and trends from the Office for National Statistics about the cost of living. Explore changes in the cost of everyday items and how this is affecting people.    

The cost of living has been rising in recent months in the UK and across the world.

Food and energy prices have been rising markedly over the past year, particularly gas prices, partly in response to the conflict in Ukraine. Global recovery from the coronavirus (COVID-19) pandemic is putting further pressure on prices.

In the UK, prices of consumer goods and services rose by 9.6% in the year to October 2022 - the fastest rate in four decades. Since then the annual inflation rate, as measured by the Consumer Prices Index including owner occupier's housing costs (CPIH), has slowed.

In the year to July 2023 the annual inflation rate was 6.4%, down from 7.3% in June.

You can explore how the prices of over 450 items in the inflation basket have increased over the past year with our shopping prices comparison tool.

You can use our Personal Inflation Calculator to get your own, personalised inflation rate based on what you spend your money on.

Housing: Private rents rise at record pace while house price growth slows
Private rental prices continued to grow at record high rates in all UK countries in the year to July 2023.

Overall, UK private rental prices increased 5.3% in the year to July 2023, up from 5.2% in the 12 months to June 2023. This is the largest annual percentage change since this UK data series began in January 2016.

Across the UK, house prices increased 1.7% in the year to June 2023 (provisional estimate). This was down from the revised estimate of 1.8% in May 2023.

The average UK house price was £288,000 in June 2023 (provisional). This is £5,000 higher than the same month a year ago, but £5,000 less than the recent peak in November 2022.

You can use our Mortgage Calculator tool to see how mortgage repayment costs have changed around the country and enter your own inputs to personalise estimates for where you live.

Read more about the cost of living and housing

Food: More than half of adults buying less food
More than half of adults (51%) in Great Britain said they were buying less food when food shopping in the past two weeks.

This is according to those asked between 26 July and 6 August 2023 as part of our latest Public opinions and social trends bulletin.

Rising food costs was the most commonly reported reason among the 56% of adults who said their cost of living had risen compared with a month ago.

Of those, 97% said one of the reasons for their rising costs was higher food shopping prices.

Read more about the cost of living and food

Spending: More than two-thirds of adults spending less on non-essentials
More than two-thirds of adults in Great Britain are spending less on non-essentials because of the rising cost of living. This is according to those asked between 26 July and 6 August 2023 as part of our latest Public opinions and social trends bulletin.

A boost in average pay in April to June 2023, coupled with a recent reduction in the rate of inflation (rising prices), means that real wages (adjusted for inflation) are beginning to improve compared with recent months.

Average regular pay (excluding bonuses) for employees rose by 7.8% in April to June 2023 compared with the same period the previous year, according to the latest labour market data. This is the highest growth rate since 2001. Total pay (including bonuses) rose by 8.2%, although this was affected by one-off bonus payments made to NHS workers in June 2023.

In real terms (adjusted for Consumer Price Inflation including owner-occupier's housing costs, or CPIH) growth in regular pay increased slightly, by 0.1% and total pay rose by 0.5% over the same period.

Read more about the cost of living and spending.

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