Topic briefing

UK inflation and interest rates

A clear view of the official figures, Bank of England decisions and what they can mean for cash, mortgages, bonds and long-term portfolios.

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How the pieces connect

Inflation measures how quickly prices are changing. Bank Rate is the Bank of England's main policy tool for bringing inflation back towards its 2% target.

01

Inflation

The Consumer Prices Index is the headline measure. Services, wages, energy and food can tell different stories beneath that single number.

02

Bank Rate

The Monetary Policy Committee weighs current inflation against evidence about where prices and demand may go next.

03

Investor impact

Rates can affect savings returns, borrowing costs, bond prices, company valuations and sterling, but none moves in a simple straight line.

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The evidence and decisions

Each report separates verified facts from analysis and links directly to the primary source.

Use the data carefully

What one release cannot tell you

A single monthly inflation figure can be affected by volatile components and comparisons with prices a year earlier. A single Bank Rate decision is also not a promise about the next meeting.

For investors, the useful question is not simply whether a number rose or fell. It is whether the composition of inflation, labour-market evidence and the Bank's own projections materially change the range of plausible outcomes.

Important: This page provides general information, not personal investment advice. Inflation, interest rates and asset prices can move differently from expectations, and investments can fall as well as rise.

Primary sources

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