UK households feel cost‑of‑living pressure despite falling inflation

Official inflation rates in the United Kingdom have dropped to a 2.6‑3.2% range, but the cumulative price rise since 2021 remains around 30.7%. The Office for National Statistics notes that price increases in food, energy and housing continue to outpace headline figures, leaving many families still struggling.

A 2026 survey shows 87% of British adults consider the cost of living their top concern. The personal‑income‑tax allowance remains frozen at £12,570, while the Ofgem dual‑fuel price cap sits at £1,663 per year and is expected to rise. Private‑rental costs are up 5.5% year‑on‑year, and 23% of adults cannot cover an unexpected £850 expense without borrowing. These factors explain why, even as inflation eases, households report persistent financial pressure.