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.
When inflation peaked at 11.2 percent in October 2022, for example, core inflation stood at just 6.5 percent. After energy prices in 2023 fell relative to 2022, the overall inflation rate in the UK declined quite rapidly, with core inflation overtaking the overall rate in July 2023. During the most recent period of high inflation, core inflation peaked at 7.1 percent in May 2023, and while taking longer to fall than the overall figure, has generally been declining since then.
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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. In that month, prices were rising by 11.1 percent and did not fall below double figures until April 2023. This fall was largely due to slower price increases in key sectors such as energy, which drove a significant amount of the 2022 wave of inflation.
- Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022.
- The Met Office has issued a yellow “be aware” warning for western and northern Scotland.
- The UK’s high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic.
- After an outcry among Labour lawmakers, and a better-than-expected update on public finances, she reversed course, opting for a smorgasbord of smaller revenue-raising measures.
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The government was elected in a landslide victory in July 2024 on a promise not to raise taxes on income for working people, and Reeves acknowledged that some of the budget’s £26 billion ($34 billion) in tax hikes broke the spirit of that pledge and would face criticism. Since leaving the EU most disputes under UK-EU agreements are addressed through consultation between the parties. In 1982 Argentina invaded the British territories of South Georgia and the Falkland Islands, leading to the 10-week Falklands War in which Argentine forces were defeated. The inhabitants of the islands strongly favour British sovereignty, expressed in a 2013 referendum. From 1984 the British economy was helped by the inflow of substantial North Sea oil revenues.114 Another British Overseas Territory, Gibraltar,115 is a key military base; a referendum in 2002 on shared sovereignty with Spain was rejected.
Energy
England’s highest mountain is Scafell Pike, at 978 metres (3,209 ft) in the Lake District; its largest island is the Isle of Wight. The UK inflation rate was 3.6 percent in October 2025, down from 3.8 percent non gamstop casinos in the previous two months, which was the fastest rate of inflation since January 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years.
