FX.co ★ UK Core RPI Surges to 4.1% in December: Inflation Pressure Mounts

The United Kingdom's Core Retail Price Index (RPI) experienced a significant surge, reaching 4.1% in December 2025. This marks a notable increase from the previous month's 3.7%, highlighting the mounting inflationary pressures on the British economy. This data, updated on 21 January 2026, reflects a year-over-year comparison, measuring the change in prices for December 2025 against December of the prior year.

The jump in December's Core RPI indicates rising costs that have escalated the broader inflation outlook for the UK. This increase could potentially influence the monetary policy decisions of the Bank of England, as it balances the goal of economic stimulation with the need to keep inflation in check.

With the year-over-year figure climbing to 4.1%, policymakers and economists alike will be analyzing the underlying factors driving these costs higher and considering measures to address the persistent inflationary environment. The data suggests not only immediate impacts on consumer prices but also broader implications for economic growth and financial stability in the UK.