Monthly inflation rate and central bank interest rate in the UK 2018-2024
The inflation rate for consumer prices in the United Kingdom exhibited significant fluctuations between January 2018 and April 2024, showing an overall decreasing trend in 2023 and 2024. The lowest inflation rate was recorded in August 2020 at 0.5 percent, while the highest occurred in October 2022 at 9.6 percent. In April 2024, the inflation rate stood at three percent, the lowest since September 2021.
As the central bank interest rate is one of the primary tools to manage inflation, it also showed similar trends during the observed period. From January 2018 to February 2020, the central bank interest rate fluctuated between 0.5 and 0.75 percent. From April 2020 to November 2021, it remained at 0.1 percent until a prolonged period of regular interest rate increases began. Between August 2023 and April 2024, the interest rate was 5.25 percent, the highest within the observed period.