Why are prices rising so quickly?
in the autumn, the Bank of England says the "current high rates of inflation are not likely to last".. Historically, when inflation has risen above 9% it has taken years, not months, to recover.The Bank of England's traditional response to rising inflation is to raise interest rates. This can encourage people to save, but means some people with mortgages see their monthly payments go up.
But when inflation is caused by things like rising energy prices worldwide, there is a limit as to how effective UK interest rate rises can be in slowing inflation.
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