Other major cities include Birmingham, Liverpool, and Manchester in England, Belfast and Londonderry in Northern Ireland, Edinburgh and Glasgow in Scotland, and Swansea and Cardiff in Wales. The UK became the first industrialised country and was the world’s foremost power for the majority of the 19th and early 20th centuries, particularly during the Pax Britannica between 1815 and 1914. At its height in the 1920s, the empire encompassed almost a quarter of the world’s landmass and population, and was the largest empire in history. However, its involvement in the First World War and in the Second World War damaged Britain’s economic power, and a global wave of decolonisation led to the independence of most British colonies. Like the Retail Price Index, the Consumer Price Index inflation rate also reached a recent peak in October 2022.
Inflation rises across in the world in 2022
Northern Ireland also has symbols, many of which are shared with the Republic of Ireland. Although the Retail Price Index is a commonly utilized inflation indicator, the UK also uses a newer method of calculating inflation, the Consumer Price Index. The CPI, along with the CPIH (Consumer Price Index including owner occupiers’ housing costs) are usually preferred by the UK government, but the RPI is still used in certain instances. Increases in rail fares for example, are calculated using the RPI, while increases in pension payments are calculated using CPI, when this non gamstop casinos is used as the uprating factor.
Hitting fiscal targets, such as reducing the national debt, will require a careful balancing of the books from the current government, and the possibility for either spending cuts or tax rises. Although Labour ruled out raising the main government tax sources, Income Tax, National Insurance, and VAT, at the 2024 election, they did raise National Insurance for employers (rather than employees) and also cut Winter Fuel allowances for large numbers of pensioners. Less than a year after implementing cuts to Winter Fuel, the government performed a U-Turn on the issue, and will make it widely available by the winter of 2025.
Inflation rate for the Retail Price Index (RPI) in the United Kingdom from January 2015 to October 2025
(The adjective “British” came into use at this time to refer to all the kingdom’s peoples.) Ireland came under English control during the 1600s and was formally united with Great Britain through the Act of Union of 1800. The republic of Ireland gained its independence in 1922, but six of Ulster’s nine counties remained part of the United Kingdom as Northern Ireland. Relations between these constituent states and England have been marked by controversy and, at times, open rebellion and even warfare. These tensions relaxed somewhat during the late 20th century, when devolved assemblies were introduced in Northern Ireland, Scotland, and Wales.
England, occupying most of southern Great Britain, includes the Isles of Scilly off the southwest coast and the Isle of Wight off the southern coast. Scotland, occupying northern Great Britain, includes the Orkney and Shetland islands off the northern coast and the Hebrides off the northwestern coast. United Kingdom, island country located off the northwestern coast of mainland Europe. The United Kingdom comprises the whole of the island of Great Britain—which contains England, Wales, and Scotland—as well as the northern portion of the island of Ireland. The capital is London, which is among the world’s leading commercial, financial, and cultural centres.
- The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops.
- The UK has a highly developed social market economy.262263 With an estimated nominal GDP of £2.765 trillion in 2024,264 it is the sixth-largest national economy in the world and the second-largest in Europe.
- There is also an additional price index, which includes some extra housing costs, known as the Consumer Price Index including homer occupiers’ costs (CPIH) index, which is seen by the UK’s Office of National Statistics as the official inflation rate.
The possibility of redesigning the Union Flag to include representation of Wales was discussed in 2007.541 The national anthem of the United Kingdom is “God Save the King”, with “King” replaced with “Queen” in the lyrics whenever the monarch is a woman. The UK has many gastropubs and is the birthplace of many alcoholic drinks including several beer styles such as pale ale, India pale ale, bitter, brown ale, porter, and stout. The number of craft beers and microbreweries has expanded rapidly in the last two decades.512 Other popular alcoholic drinks produced in the UK include Scotch whisky, English wine, gin, perry and cider. Legend says it was built by a giant who wanted a shortcut between Northern Ireland and Scotland, but really it was formed when the lava from a volcano cooled and formed these columns. Cool and creative, and part of Lonely Planet’s Best in Travel 2026 list, Bristol is a must-visit for art, culture and action-packed adventure. From palaces to cobbled alleys and even a castle on a dormant volcano, this city is a real show-stopper.
The UK’s high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic. Following the initial waves of the virus, global supply chains struggled to meet the renewed demand for goods and services. Russia’s invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia. The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops.
The archipelago formed by Great Britain and the numerous smaller islands is as irregular in shape as it is diverse in geology and landscape. This diversity stems largely from the nature and disposition of the underlying rocks, which are westward extensions of European structures, with the shallow waters of the Strait of Dover and the North Sea concealing former land links. Britain’s public finances, like those of other nations, have been squeezed in recent years by the costs of the Covid-19 pandemic, the Russia-Ukraine war and US President Donald Trump’s tariffs.
The UK has a highly developed social market economy.262263 With an estimated nominal GDP of £2.765 trillion in 2024,264 it is the sixth-largest national economy in the world and the second-largest in Europe. Since 2022 the UK has been both the world’s fourth-largest exporter266 and fourth-largest importer267 of goods and services. Despite having one of the highest levels of income inequality in the OECD,268269 the UK has a very high HDI ranking, including when adjusted for inequality. As of 2025 the UK unemployment rate is 4.7%,270 which is moderately low by European standards. The United Kingdom has made significant contributions to the world economy, especially in technology and industry. Since World War II, however, the United Kingdom’s most prominent exports have been cultural, including literature, theatre, film, television, and popular music that draw on all parts of the country.
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