Prices in the UK rose by 2.8% in the 12 months to February, less than in the previous month but still above the Bank of England’s target.
The Bank moves interest rates up and down to try to keep inflation at 2%, and has cut three times since August 2024.
When it announced the last cut in February, the Bank warned that it expected inflation to rise again in 2025.
What is inflation?
Inflation is the increase in the price of something over time.
For example, if a bottle of milk costs £1 but is £1.05 a year later, then annual milk inflation is 5%.
How is the UK’s inflation rate measured?
The prices of hundreds of everyday items, including food and fuel, are tracked by the Office for National Statistics (ONS).
This virtual “basket of goods” is regularly updated to reflect shopping trends, with virtual reality headsets and yoga mats added in 2025, and local newspaper adverts removed.
