Monthly inflation rate and central bank interest rate in the UK 2018-2024
Between January 2018 and July 2024, the United Kingdom's consumer price inflation rate experienced significant fluctuations, with an overall downward trend in 2023 and 2024. The rate reached its lowest value in August 2020 at 0.5 percent, and it peaked in October 2022 at 9.6 percent. By July 2024, inflation had moderated to 3.1 percent, showing a slight uptick from previous months.
The Bank of England's interest rate policy, a key tool for managing inflation, mirrored these trends. From January 2018 to February 2020, the central bank rate fluctuated between 0.5 and 0.75 percent. In response to the economic challenges of 2020, the rate was slashed to 0.1 percent in April, where it remained until November 2021. Subsequently, a series of rate hikes began, culminating in a peak of 5.25 percent from August 2023 to July 2024 - the highest in the observed period. This trend reversed in August 2024 with the first rate cut since July 2023, signaling a potential shift in monetary policy.
