UK household costs rise 2.5% in year to June ’24

Over the past three years, the inflation rate for all households has closely followed the fifth income decile, with costs for these households rising by 2.3 per cent in the year to June 2024. High-income households (decile 9) saw a 3.3 per cent increase, while low-income households (decile 2) experienced a 1.7 per cent rise.

By tenure type, mortgagor and other owner-occupier households faced the highest annual inflation rate at 3.7 per cent, driven by rising mortgage interest payments. Outright owner occupiers had the lowest rate at 1.3 per cent. Private renters experienced a higher HCI inflation rate (3.2 per cent) compared to social and other renters (1.9 per cent).

Non-retired households saw a higher annual inflation rate (2.9 per cent) than retired households (1.2 per cent). Households with children had an inflation rate of 2.9 per cent, while those without children saw a rate of 2.3 per cent.