Latest inflation figures to be announced

Inflation measures how quickly prices are rising (or very occasionally falling) for goods and services.

And a series of shocks to the economy over recent years has caused high inflation, the Bank of England says.

First, the Covid pandemic pushed prices up as more people bought goods – but there were problems getting enough of the goods, particularly with importing them from abroad.

Second, the war in Ukraine led to large increases in the price of gas and food.

Then, a big fall in the number of people available to work meant employers began offering higher wages to job applicants, with many businesses increasing their prices to cover these costs.

It is important to understand that things will continue to cost more than they did before, even if the rate of inflation falls.