How much prices have risen since 2020, country by country
Official inflation figures for the UK, US, Canada, Australia, New Zealand, the euro area, UAE and Saudi Arabia from 2020 to 2025, and why the Gulf escaped most of it.
Prices have risen faster since 2020 than at any time since the early 1990s. But the rise was very different from country to country, and so was how fast it calmed down. Here’s what happened, using the official consumer price figures from each country’s statistics office.
How much prices rose from 2020 to 2025
| Country | Rise 2020 to 2025 | Peak year | Inflation in 2025 | 100 in 2020 is now |
|---|---|---|---|---|
| United Kingdom | 27.3% | 9.1% (2022) | 3.4% | 127.32 |
| New Zealand | 24.7% | 7.2% (2022) | 2.8% | 124.67 |
| United States | 24.4% | 8.0% (2022) | 2.6% | 124.39 |
| Australia | 22.8% | 6.6% (2022) | 2.8% | 122.84 |
| Euro area | 22.6% | 8.4% (2022) | 2.1% | 122.55 |
| Canada | 19.9% | 6.8% (2022) | 2.1% | 119.85 |
| Saudi Arabia | 12.2% | 3.1% (2021) | 2.0% | 112.24 |
| United Arab Emirates | 9.9% | 4.8% (2022) | 1.3% | 109.85 |
Annual average prices. The UK had the biggest rise: something that cost £100 in 2020 cost about £127 in 2025. In the UAE the same basket rose by under 10%.
Why 2022 was the worst year
Three things hit at once: demand bounced back after lockdowns while supply chains were still tangled, energy and food prices jumped after Russia’s invasion of Ukraine, and many countries had very low interest rates and large support payments. Europe and the UK, more dependent on imported gas, were hit hardest by energy bills; the UK’s rate stayed above 7% for longer than anyone else’s.
Why the Gulf escaped most of it
The UAE dirham and Saudi riyal are pegged to the US dollar, and both countries control or subsidise fuel and some utility and food prices. As energy exporters, higher oil prices boosted government income rather than household bills. Saudi Arabia’s highest year, 2021, was driven by the VAT rise from 5% to 15% in mid-2020, not by the global surge.
Prices haven’t come back down
Lower inflation means prices are rising more slowly, not falling. The 20% to 27% jump in the cost of living in Western countries is permanent unless wages catch up. That’s why it’s worth checking whether your pay has kept pace: enter your 2020 salary in the inflation calculator and compare the result with what you earn now.
What it means for savings and debts
- Cash savings earning less than inflation lose buying power. Use the compound interest calculator to see how much interest you’d need to keep up.
- Fixed-rate debts, such as a mortgage fixed before 2022, became cheaper in real terms as wages rose.
- Salary negotiations are easier with numbers. A pay rise of 3% in a year of 3.4% inflation is a small cut in real pay.
Sources: US Bureau of Labor Statistics, UK Office for National Statistics, Statistics Canada, Australian Bureau of Statistics, Stats NZ, Eurostat, UAE Federal Competitiveness and Statistics Centre, and Saudi General Authority for Statistics via the World Bank. Figures are annual averages; 2026 data will be added when the full year is published.