What is the current UK inflation rate?

UK Consumer Prices Index inflation was 3.3% in the 12 months to March 2026, up from 3.0% in the 12 months to February 2026, published by the Office for National Statistics on 22 April 2026. CPIH, which includes owner-occupier housing costs, was 3.4%. Core inflation (excluding energy, food, alcohol and tobacco) was 3.1%, slightly below February's reading.

When does the Bank of England next set interest rates?

The next Monetary Policy Committee decision is 30 April 2026. The Bank Rate is currently 3.75%, held unanimously at the March 2026 meeting. The Bank's own forecast is that CPI will run between 3.0% and 3.5% through the second and third quarters of 2026 before easing.

How much will my mortgage go up if the Bank Rate rises by 0.25 points?

For a variable-rate or tracker mortgage, a 0.25 percentage point Bank Rate increase adds roughly £300 per year (£25 per month) to a £200,000 25-year loan. Fixed-rate mortgages already in place do not change. New fixed rates reprice on expectations of what the Bank will do, so the rate you can get today will shift as those expectations shift.

Will the April 2027 state pension go up by the same amount?

The April 2026 state pension uprating (+4.8%) was already locked in by the September 2025 CPI print under the triple lock. The April 2027 uprating will be set by September 2026 CPI, which depends on whether the Iran-driven energy spike persists. If September CPI comes in above 2.5% and above earnings growth, the pension rises by that CPI figure.

UK Cost Of Living: Inflation, Bank Rate And Household Bills Tracker

This hub tracks UK Consumer Prices Index (CPI) inflation, the Bank of England Bank Rate, and what those two numbers mean for UK household bills: mortgage repayments, savings interest, fixed-rate product pricing, state pension uprating, and benefit uprating. Primary sources: Office for National Statistics monthly CPI bulletin, Bank of England Monetary Policy Summary, and HMT Budget forecasts.

Current numbers

Latest ONS release (for March 2026, published 22 April 2026):

Headline CPI: 3.3% in the 12 months to March 2026, up from 3.0% in February 2026.
CPIH (CPI including owner-occupier housing costs): 3.4%, up from 3.2%.
Core CPI (excluding energy, food, alcohol, tobacco): 3.1%, down from 3.2%.
Bank of England target: 2.0%. March 2026 headline is 1.3 percentage points above target.

Bank of England Bank Rate: 3.75%, held unanimously at the March 2026 MPC meeting. Next decision: 30 April 2026.

What's driving the March 2026 rise

The March 2026 CPI print is the first full month of data covering the UK's exposure to the Middle East conflict that began on 28 February 2026. Motor fuels were the main contributor to the monthly increase in headline CPI and CPIH. Oil prices rose sharply in March on Strait of Hormuz shipping concerns, and that has fed through to UK pump prices over the following weeks (see the UK petrol prices hub).

Core CPI, which strips out energy and food, actually fell slightly (3.2% → 3.1%). That suggests the underlying inflation trend is cooling, with the headline rise concentrated in commodities the Bank cannot directly control.

What it means for your money

Mortgages

The Bank Rate feeds directly into variable and tracker mortgage rates. If the MPC holds or cuts on 30 April, existing variable rates stay put or ease. If the MPC raises, a 0.25 percentage point increase adds roughly £300 per year to a £200,000 25-year variable mortgage. Fixed-rate mortgages already in place do not change; new fixed rates reprice on expectations, not the live cash rate.

Savings rates

Best-buy easy-access and fixed-term savings rates typically track the Bank Rate with a short lag. See the UK savings rates hub for weekly best-buy snapshots.

State pension and benefits

The UK state pension uprates in April each year by the higher of CPI, wages growth, or 2.5% under the triple lock. Most working-age benefits uprate by September CPI. The April 2026 uprating was already set (state pension +4.8%) by September 2025 CPI. The April 2027 uprating will be set by September 2026 CPI, which depends on the inflation trajectory from here.

Pay

Real wages (nominal pay minus CPI) shape household spending power. With headline CPI at 3.3%, any pay rise below that figure is a real-terms pay cut. Public-sector pay review bodies reference CPI when setting recommendations.

What Ofcom, Ofgem and the big bill-setters are doing

Cost-of-living inflation has multiple regulated pressure points:

Ofgem sets the quarterly energy price cap. Current cap (1 April to 30 June 2026): £1,641 per year for a typical household. Next cap covers 1 July to 30 September 2026. See the energy price cap hub.
Ofcom regulates broadband and phone price rises. Most contracts are now capped at inflation plus a fixed percentage (typically CPI+3%).
Water bills rose by an average of 26% in April 2026 under Ofwat's 2025-30 determination, separate from CPI.
Council tax rose by an average of 5.0% in April 2026 across England.

Where to check

ONS inflation and price indices — authoritative monthly CPI release.
Bank of England Monetary Policy Summary — MPC decision rationale, meeting minutes.
House of Commons Library inflation briefing — context and longer-term series.

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