Philenews

UK Inflation Rises to 3.4% - Remains High Compared to Eurozone

Published January 21, 2026, 08:21
UK Inflation Rises to 3.4% - Remains High Compared to Eurozone

The UK's core inflation rate accelerated to 3.4% in December, exceeding expectations and remaining the highest in the G7 group. This is significantly higher than the average inflation rate in the Eurozone (1.9%) and the EU (2.3%), while Cyprus's inflation in 2025 compared to 2024 was 0.8%. However, the rate of price increases is expected to slow down in the coming months, due to the non-repetition of increases in energy bills and other government-controlled services. The Bank of England predicts that inflation will approach its 2% target in April or May 2026.