Jun 22, 2023 · To keep inflation low and stable, the Government sets us an inflation target of 2%. This helps everyone plan for the future. If inflation is too high or it moves around a lot, it’s hard for businesses to set the right prices and for people to plan their spending.

Use our inflation calculator to check how prices in the UK have changed over time, from 1209 to now. Our inflation calculator is designed for illustrative and general reference purposes only.

Our quarterly Inflation Reports set out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions.

Nov 7, 2024 · Monetary policy affects how much prices are rising – called the rate of inflation. We set monetary policy to achieve low and stable inflation. This is our primary monetary policy objective.

What is inflation? Inflation is the term we use to describe rising prices. How quickly prices go up is called the rate of inflation.

Inflation is the measure of the speed of those increases. When prices are rising quickly, it means inflation is high and you can’t buy as much with your money. Therefore, the cost of living is higher. The Government sets us a target of ensuring inflation is low and stable at 2%.

Monetary policy at the Bank of England The objectives of monetary policy The Bank’s Monetary Policy Committee (MPC) sets monetary policy to keep inflation low and stable, which supports growth and jobs. Subject to maintaining price stability, the MPC is also required to support the Government’s economic policy.

The Bank of England’s Monetary Policy Committee is responsible for making decisions about Bank Rate. Read more about Bank Rate maintained at 4.75% - December 2024

Bank of England Page 2 Speech Introduction Central banks have come under fire for missing their inflation targets, but at least as much because their inflation forecasts have really missed outturns. It is reasonable for people to wonder: How can monetary policy be set correctly if the forecast misses are so large?

The Bank of England works to keep price rises low and stable. If prices go up quickly or move around a lot, it’s hard for businesses to set their prices and for people to plan their spending. The Government has set the Bank of England a target of keeping inflation at 2%.