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UK inflation hits 3.6%: How are wages and interest rates
Prices in the UK are up again, with inflation hitting 3.6% over the past year—well above the Bank of England's 2% goal.
Food costs have climbed by 4.5%, and everyday essentials like chocolate and butter are pricier than before.
While things aren't as wild as the 11.1% peak back in late 2022, it's clear that living costs are still rising.
Bank of England's response and economic challenges
The Bank of England has been cutting interest rates (now at 4.25%) to help out, and more cuts might be coming soon.
Wages are actually growing faster than inflation—up by 1.8% after adjusting for price hikes—but there's a catch: job vacancies have dropped, and unemployment is now at 4.7%.
Governor Andrew Bailey says global uncertainty (like US tariffs) could keep things unpredictable for a while longer.