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 4.79% and have been edging down. If you're remortgaging, compare that with your current rate to see the likely change to your monthly payment. Five-year fixes are cheaper at 4.61%, which usually means markets expect rates to fall.
• The 10-year gilt yield is 5.35%. It's the rate that drives fixed mortgage pricing and annuity rates, and rising yields push down the price of existing bonds.

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