UK GDP deflator, annual growth
UK GDP deflator, annual growth stood at 2.4% in Q2 2026, according to Office for National Statistics (ONS). It is one of the indicators in the Quarterly GDP table (Value · Quarterly), with a complete series running from Q1 1956 to Q2 2026. The complete series with an interactive chart, free to download.
This indicator in the Quarterly GDP table
| Indicator | Q2-2026 | Q1-2026 | Q4-2025 | Q3-2025 | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Deflators | |||||||||||
| GDP deflator, year on year | 2.4 | 3.1 | 3.2 | 3.3 | 3.8 | 3.9 | 4.4 | 3.9 | 3.3 | 3.6 | |
| GDP deflator, quarter on quarter | 0.3 | 0.8 | 0.6 | 0.7 | 1 | 0.9 | 0.6 | 1.3 | 1.2 | 1.4 |
Understanding UK GDP deflator, annual growth
Annual percentage change in the price level of all final goods and services produced within the United Kingdom is recorded in this series. Derived implicitly by comparing current price expenditure with chained volume output, it reflects domestic inflationary pressure across the whole production boundary, encompassing household consumption, government spending, capital investment, and net foreign trade. It contrasts directly with consumer price indices, which exclude government purchases and capital goods while including imported consumer items, and differs from quarter-on-quarter deflator variants by examining changes over a four-quarter span.
Calculated from seasonally adjusted national accounts aggregates, the measure reflects broader systemic price pressures than narrow retail baskets. Because the implicit deflator depends on both nominal and real expenditure components, revisions to either raw spending data or underlying volume weights alter past deflator figures. Changes in expenditure composition can shift the index even if individual product prices remain stationary. Comparing figures year on year eliminates seasonal fluctuations, but users should note that import price spikes enter domestic consumer metrics directly while entering this production deflator only to the extent that domestic margins adjust.
Frequently asked questions
- How does the GDP deflator differ from the Consumer Prices Index?
- The deflator captures prices across all domestically produced output, including capital assets and government services, whereas consumer indices monitor a fixed basket of consumer goods and include import costs.
- Why can shifts in spending patterns affect this growth rate?
- Because the deflator is an implicit index derived from changing expenditure weights, substitutions between expenditure components influence the calculated rate alongside pure price movements.
- Why is the year-on-year growth rate used rather than a quarter-on-quarter calculation?
- Measuring over four quarters removes seasonal shifts and dampens erratic quarterly fluctuations in government procurement or capital outlays.