Mitchell Labiak
business reporter

Today’s inflation figures show how fast prices have risen over the past year, but they don’t tell the whole story.

First, inflation is average, and the prices of some things rise faster than others. For example, inflation in the year to December was 3.4%, but a closer look at the data shows that food prices, service prices, and home maintenance costs have all risen at a faster pace.

Now consider how much prices have increased since 2021 rather than over the past year. According to the Bank of England’s inflation calculator, externalwhich was £10 at the time, will be £12.54 in December 2025, an increase of 25.4%. Not everyone’s salary has increased at the same rate.