Household costs across the UK went up by 2.6% in the year to March 2025, falling from 2.9% in December 2024, according to the latest ONS Household Costs Index.
Over the past year, the inflation rate for all households tracked closest to households in the sixth income decile, with their costs rising 2.5%.
High-income households in decile nine saw a 2.7% increase, while low-income households in decile two also had a 2.5% rise.
Private renter households faced the highest annual inflation at 3.6% in March 2025, mainly due to rising rental payments.
Social and other renters followed, with a 3.0% inflation rate.
Outright owner occupiers saw the lowest increase at 1.8%, with mortgagor households next at 2.8%.
Non-retired households experienced a 2.8% inflation rate, higher than the 2.1% seen by retired households.
Among households with children, the annual inflation rate fell from 3.1% in December 2024 to 2.8% in March 2025.
Households without children saw a smaller drop, from 2.8% to 2.6%.
Angharad Trueman, president at ARLA Propertymark, said: “With private rents seeing their highest annual inflation rate in March 2025, it remains more vital than ever the UK Government and the devolved administrations take a wide angle view regarding taxes impacting the private rental sector and look at ways to encourage and support new investment for the long term.
“Currently such factors are sadly contributing towards driving up costs and reducing the supply in some areas for rental properties.”
