UK inflation rate: How quickly are prices rising?
Summary
Prices in the UK rose by 2.6% in the 12 months to March 2025, less than the previous month but still above the Bank of England's 2% target. The Bank of England has lowered interest rates to 4.25% throughout 2025 to address inflation, which had peaked at 11.1% in 2022. Inflation is driven by various factors, including energy prices and global events, and the Bank uses interest rates to try to manage it.Key Facts
- UK inflation was 2.6% in March 2025, down from 2.8% in February.
- The Bank of England aims to keep inflation at 2% by adjusting interest rates.
- Inflation soared to 11.1% in October 2022, partly due to high energy prices.
- The Office for National Statistics measures inflation with the Consumer Prices Index (CPI).
- Interest rates have been reduced to 4.25% by the Bank of England in 2025.
- Core inflation, which excludes food and energy, was 3.4% in March 2025.
- Inflation reduction involves making borrowing more expensive to decrease spending.
- Regular pay growth in Great Britain was 5.9% between December and February, outpacing inflation.
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