Here's how the prices of common items in the UK have changed since 1992 in comparison to inflation.
The cost of living in the UK is going through the roof, with the prices of some items rising above inflation. For many, life seems to be getting less affordable. This can mean that trying to get a mortgage deposit together feels almost impossible, especially as house prices are rising at exponential rates. Regular saving is also becoming more difficult. To see how bad the situation really is, we have compared the prices of common items to check how they have changed over the last 30 years and how they compare to inflation.
Highlights
Inflation reached an average of 9.1% in 2022.
Petrol cost 30% more in 2022 compared to 2021 on average.
In 2023, UK electricity prices are up 150% compared to a base price in 1992.
Annual average real earnings increased by just under 4% from 2021 to 2022.
At the average house price of £294,329 in 2023, UK residents would be able to buy 5 houses in 1992 and have around £20,000 left over.
In 2023, the average price for a pint of milk is £0.69 compared to £0.44 in 2019 and £0.34 in 1992.
How much have prices risen in 2022?
In 2022, inflation rose to the highest it has been since 1992, reaching an average of 9.1%. This is reflected in the price increases of all the categories in the graph below.
Petrol prices have risen the most in the past year, costing 30% more in 2022 compared to 2021 on average. This is followed by a pint of milk, which was 20% more expensive in 2022 compared to 2021. A loaf of bread (12%) and stamps (12%) are the remaining items where prices have risen above inflation in the past year.
Soft drinks (7%) have increased in price this year marginally below inflation. House prices have risen 6% in 2022, which is just less than the 9% increase in 2021 compared to 2020. Rent prices (4%) have risen slightly less than house prices and a pint of beer has risen 6% in the past year.
Worryingly, salaries have risen considerably less than inflation, with annual salaries having only increased by just under 4% in the past year. This is more than half or 5% less than the current inflation (9.1%).
From 1992 to 2022, all items have gotten more expensive by a decent margin. While annual salaries have increased by £19,359, house prices have increased by £233,184 in the same time frame. In the UK, house prices were 4 times more than annual salaries in 1992 and on average were 9 times the average annual salary in 2022.
Items such as petrol have increased significantly. A full 55-litre tank in 1992 would have cost £23.87 while in 2022 it cost £104.50. A pint of milk has risen from 34p to 55p, stamps 24p to 95p, a loaf of bread 55p to £1.20 and soft drinks from £1.52 to £3.08.
Item
1992 price
2022 price
Percentage increase
House prices
£53,213
£286,397
438%
Pint of milk
£0.34
£0.55
62%
Stamp
£0.24
£0.95
296%
Loaf of bread
£0.55
£1.20
118%
Inflation
4.20%
8.04%
91%
Pint of beer
£1.49
£4.19
181%
Soft drinks
£1.52
£3.08
103%
Petrol
43.4p per litre
190p per litre
338%
Annual salary
£12,088
£31,447
160%
UK electricity prices over time
Prices for electricity have been climbing steadily over the past 3 decades, really increasing from around 2005. In 2023, UK electricity prices are up 150% compared to a base price in 1992.
Petrol prices are very volatile. However, over time the cost of driving a car has risen incrementally. Yearly average petrol prices peaked in late 2022 at 190p per liter, falling to 151p at the start of 2023. The 2023 average price is still a 247% increase from 1992.
House prices have grown the most in the last 3 decades, with the average UK house price in 2023 up 453% compared to 1992. At the average house price of £294,329 in 2023, UK residents would be able to buy 5 houses in 1992 and have around £20,000 left over.
UK annual real earnings have grown, albeit slower than the price of most other goods listed on this article. The average annual real earnings are up 160% compared to 1992, jumping from £12,088 to £31,447 in 2022.
Beer prices have risen steadily over time, up 184% in 2023 compared to 1992. In 2023, the average price for a pint of beer is £4.23 compared to £1.49 in 1992.
Milk prices have risen sharply since the pandemic, specifically in 2021 and 2022. In 2023, the average price for a pint of milk is £0.69 compared to £0.44 in 2019 and £0.34 in 1992.
The price of a loaf of bread has experienced growth in 2 stages, first at the end of the 2000s and then further in the last 2 years. In 2023, the average price of a loaf of bread is £1.39 compared to £0.55 in 1992.
Using data from the below sources, Finder worked out the percentage increases in the prices of several common items and compared them to the inflation rate over time.
Data sources: Land Registry, ONS, Royal Mail and House of Commons Library.
Click here for more research. For all media enquiries, please contact –
Matt Mckenna
UK Head of Communications T: +44 20 8191 8806
How do property prices in the UK compare to the rest of the world? We estimated the cost of a city centre 2-bed flat in 106 countries to find out.
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