In recent years, the UK has had a relatively high rate of inflation which has exasperated the already difficult cost of living crisis.
How is inflation measured in the UK?
According to the Bank of England, inflation is the measure of how much the prices of goods and services have gone up over time.
Higher interest rates are helping to bring inflation down. This means the speed at which prices rise is slowing. We expect inflation to fall further this year. https://t.co/DlCn88I5ut #inflation #MonetaryPolicyReport pic.twitter.com/7T0qQZyhSp
— Bank of England (@bankofengland) November 2, 2023
It says: “Usually people measure inflation by comparing the cost of things today with how much they cost a year ago. The average increase in prices is known as the inflation rate.”
If inflation is at 3%, prices will be on average 3% higher compared to the previous year.
In the UK, inflation is measured by the Office for National Statistics which measures prices for 700 items.
It then uses this ‘shopping basket’ to work out the Consumer Price Index (CPI) which is the country’s official measure of inflation.
The Monetary Policy Committee voted by a majority of 6-3 to hold #BankRate at 5.25%. Find out more in our #MonetaryPolicyReport: https://t.co/DlCn88I5ut pic.twitter.com/j5wFmmTtsb
— Bank of England (@bankofengland) November 2, 2023
What is the rate of inflation in the UK right now?
According to the Office for National Statistics, the current rate of inflation (as of January 2024) is 5.2%.
This is the joint-lowest since June of 2022 and is down from the rate of 6.5% recorded in May of 2023.
This previous rate was the highest recorded since November 1991, marking a downward trend.
This information is correct at the time of writing.
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