The UK Economy 

What Does This Mean For Your Money?

• Inflation has risen to 3.1%. When prices climb faster, the same money buys a little less each month.
• The base rate is 3.75%. Mortgage and savings rates usually move roughly in line with it over time.
• Wages are growing faster than inflation (3.5% versus 3.1%), which can improve household purchasing power.
• The economy grew 0.4% in Q2 2026. Growth generally supports jobs, company profits and tax revenues.
• House prices are up 1.4% over the year — helpful for existing owners, harder for first-time buyers.
• Food prices are rising more slowly than prices overall (1.3% versus 3.1%), which takes some pressure off the weekly shop.
• A typical two-year fix is around 4.92% and have been edging up. If you're remortgaging, compare that with your current rate to see the likely change to your monthly payment.

These explanations are educational only and are not personalised financial advice.