Inflation Slowing, But Prices Still High

UK inflation expected to return to 2% target by end of 2025

Apr. 11, 2026 at 10:40pm

Got story updates? Submit your updates here. ›

An abstract illustration composed of overlapping triangles and circles in shades of blue, red, and yellow, conceptually representing the slowing of inflation rates in the UK.As UK inflation cools, a geometric illustration captures the gradual return to the Bank of England's 2% target.Today in Miami

Prices in the UK have been rising quickly over the past two years, making it harder for people to afford everyday expenses. However, the Bank of England expects inflation to continue slowing down, projecting it will return to the 2% target by the end of 2025. While many items will still cost more than a few years ago, the rate of price increases is expected to moderate.

Why it matters

High inflation has put a strain on household budgets, forcing people to make difficult choices about spending. The Bank of England's actions to raise interest rates aim to bring inflation back under control, which is crucial for maintaining economic stability and purchasing power.

The details

The Consumer Price Index (CPI), the main measure of inflation, reached a peak of 11% in 2022 but has been declining since then. It stood at 4.6% in October 2023. The Bank of England has aggressively raised interest rates over the past two years in an effort to slow demand and bring inflation down. While higher rates affect spending, they cannot immediately address the supply-side shocks that initially drove up prices, such as the impacts of the COVID-19 pandemic and the war in Ukraine.

  • Inflation reached a peak of 11% in 2022.
  • CPI inflation was 4.6% in October 2023.
  • The Bank of England expects inflation to return to the 2% target by the end of 2025.

The players

Bank of England

The UK's central bank, which has raised interest rates to combat high inflation.

Got photos? Submit your photos here. ›

What’s next

The Bank of England will continue to monitor inflation and make further adjustments to interest rates as needed to bring it back to the 2% target.

The takeaway

While high inflation has been a significant challenge for UK households, the actions taken by the Bank of England are expected to gradually restore price stability over the next few years. However, the road back to low inflation will likely involve continued economic strain as interest rates remain elevated.