The UK cost-of-living crisis of 2022-2023 — peak CPI of 11.1% — was the worst in 40 years. In 2026, inflation has moderated significantly, but the price level remains elevated and savers continue to look for ways to preserve purchasing power.
UK inflation in context (2026)
What's still driving UK prices higher
- Services inflation (wages in hospitality, healthcare, professional services)
- Housing costs — rents still rising faster than CPI in most UK cities
- Energy bills — still above pre-2021 levels despite price cap reductions
- Food — grocery prices remain significantly above 2020 levels
How to protect your money from UK inflation
| Option | Inflation protection | Liquidity |
|---|---|---|
| Easy-access savings (4-5% AER) | Beats 2-3% CPI currently | Immediate |
| Premium Bonds (~4.4% prize rate) | Competitive, tax-free prizes | ~3 days |
| Index-linked NS&I savings (if available) | Direct CPI link | Fixed term |
| Stocks & Shares ISA (global equities) | Historically beats inflation over 10yr+ | High (shares) |
| Cash in current account | Loses to inflation | Immediate |
Measure your level now
Apply what you just read and discover your real score in under 2 minutes.
About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
Want to actually apply this?
CashControlly helps you turn this into daily habits. No bank connection required.
Start 7-day free trial