Select theme:

Search

Newsletter image

Subscribe to the Newsletter

Join 10k+ people to get notified about new posts, news and tips.

Do not worry we don't spam!

GDPR Compliance

We use cookies to ensure you get the best experience on our website. By continuing to use our site, you accept our use of cookies, Privacy Policy, and Terms of Service.

  • Home
  • Money
  • Inflation falls slightly easing the pressure on households

Inflation falls slightly easing the pressure on households

Published on March 26, 2025 at 11:02 AM

Inflation falls slightly easing the pressure on households

The UK'S rate of inflation has fallen n February.

The Officefor National Statistics (ONS) said theConsumer Price Index(CPI) measured 2.8% in the 12 months to February.

Close-up of a stack of British one-pound coins.
The latest inflation figures have been published today

This is compared to a reading of (CPI) measured 3% in the 12 months to January.

Inflation is a measure of how much the prices of everyday goods such as food and clothes, and services such as train tickets and haircuts, have increased compared to a year earlier.

When inflation rises it means prices are going up at a faster pace than the month before.

The Bank of England‘s target for the inflation rate is 2%.

Meanwhile, inflation is expected to hit 3.7% in the summer, driven by increases in the price of energy and food.

It comes just days after the Bank of England decided to maintain the base rate at 4.5%.

Lenders use the base rate to determine the interest rates offered to customers on savings and borrowing costs, including mortgages.

Why does inflation matter?

INFLATION is a measure of the cost of living. It looks at how much the price of goods, such as food or televisions, and services, such as haircuts or train tickets, has changed over time.

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.

The government sets an inflation target of 2%.

If inflation is too high or it moves around a lot, the Bank of England says it is hard for businesses to set the right prices and for people to plan their spending.

High inflation rates also means people are having to spend more, while savings are likely to be eroded as the cost of goods is more than the interest we're earning.

Low inflation, on the other hand, means lower prices and a greater likelihood of interest rates on savings beating the inflation rate.

But if inflation is too low some people may put off spending because they expect prices to fall. And if everybody reduced their spending then companies could fail and people might lose their jobs.

See our UK inflation guide and our Is low inflation good? guide for more information.

  • Share:
Super Admin

Super Admin

False narrative – Ramaphosa on white people being persecuted in South Africa after Musk’s claim
Prev Article

False narrative – Ramaphosa on white people being persecuted in South Africa after Musk’s claim

Next Article

Wike: Obasanjo suggested Okonjo-Iweala, Soludo, Peter Obi as my running mate – Atiku

Wike: Obasanjo suggested Okonjo-Iweala, Soludo, Peter Obi as my running mate – Atiku

Related to this topic:

Comments (0):

Be the first to write a comment.

Post Comment

Your email address will not be published. Required fields are marked *