Why is inflation so high

Inflation is at a record high in the UK, but what does it mean?

Inflation is a measure of how much prices are rising. When inflation is high, it means that prices are rising quickly. The Office for National Statistics (ONS) has released its latest figures for inflation and they show that the rate of inflation in the UK has reached 3.1%. This means that prices have risen by 3.1% over the past year.

The main reason for this rise in inflation is due to Brexit. Inflation was 0% when Britain voted to leave the EU in 2016, but this has now risen to 3.1%. The price of food and drink has also gone up by 4%, with some products seeing even higher rises.

How does this affect me?

Inflation affects you because if things cost more then you have less money left over to spend on other things.

What causes inflation?

There are two main causes of inflation – supply and demand.