In September 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In September 2025, Russia maintained the highest interest rate at 17 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.3 percent in September 2025. In contrast, Russia maintained a high inflation rate of 8 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

In October 2025, the UK inflation rate was 3.8 percent, with prices rising fastest in the housing sector, which had an inflation rate of 7.3 percent. In this month, prices were rising in all sectors, with prices rising at the slowest pace in the furniture, household equipment and maintenance sector. UK inflation falls in 2024 After reaching a peak of 11.1 percent in October 2022, the CPI inflation rate in the UK gradually declined over several months, falling to a low of 1.7 percent by August 2024. An uptick in inflation has occurred since that month, however, and by the end of the year, inflation was at 2.5 percent above the Bank of England's target rate of two percent. Going into 2025, recent forecasts suggest that over the course of the year, inflation will average out at 2.6 percent, with the two percent target not met on an annual basis until at least 2029. Roots of the inflation crisis This long period of high inflation that the UK and much of the world experienced had its roots in the post-pandemic economic recovery of 2021. During that year, as consumer demand returned, global supply chains struggled to return to full capacity, resulting in prices rising. With inflation already elevated going into 2022, Russia's invasion of Ukraine added even more inflationary pressures to the global economy. European markets which were heavily reliant on Russian oil and gas gradually phased out hydrocarbons from their economies. Food prices were also heavily impacted due to Ukraine's difficulty in exporting its agricultural products.

Inflation Rate in the United Kingdom decreased to 3.60 percent in October from 3.80 percent in September of 2025. This dataset provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Bank of Mexico: Inflation Target data was reported at 3.000 % in 2020. This stayed constant from the previous number of 3.000 % for 2019. Bank of Mexico: Inflation Target data is updated yearly, averaging 3.000 % from Dec 2003 (Median) to 2020, with 18 observations. The data reached an all-time high of 3.000 % in 2020 and a record low of 3.000 % in 2020. Bank of Mexico: Inflation Target data remains active status in CEIC and is reported by Bank of Mexico. The data is categorized under Global Database’s Mexico – Table MX.I001: Consumer Price Index: Inflation Target.

Central Bank of Colombia: Inflation Target data was reported at 3.000 % in Mar 2025. This stayed constant from the previous number of 3.000 % for Feb 2025. Central Bank of Colombia: Inflation Target data is updated monthly, averaging 4.000 % from Jan 1993 (Median) to Mar 2025, with 387 observations. The data reached an all-time high of 22.000 % in Dec 1993 and a record low of 3.000 % in Mar 2025. Central Bank of Colombia: Inflation Target data remains active status in CEIC and is reported by Bank of the Republic of Colombia. The data is categorized under Global Database’s Colombia – Table CO.I001: Consumer Price Index: Inflation Target.

August 2024 marked a significant shift in the UK's monetary policy, as it saw the first reduction in the official bank base interest rate since August 2023. This change came after a period of consistent rate hikes that began in late 2021. In a bid to minimize the economic effects of the COVID-19 pandemic, the Bank of England cut the official bank base rate in March 2020 to a record low of *** percent. This historic low came just one week after the Bank of England cut rates from **** percent to **** percent in a bid to prevent mass job cuts in the United Kingdom. It remained at *** percent until December 2021 and was increased to one percent in May 2022 and to **** percent in October 2022. After that, the bank rate increased almost on a monthly basis, reaching **** percent in August 2023. It wasn't until August 2024 that the first rate decrease since the previous year occurred, signaling a potential shift in monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2025, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

In July 2025, the inflation rate for food prices in the United Kingdom was measured at 4.9 percent. A period of continuous deflation between March 2015 and January 2017 preceded a return to a sustained rise in the cost of food from February 2017 onwards. While food prices were deflating between September 2020 and July 2021, they started increasing rapidly from August 2021 to March 2023. The inflation rate started to decline from April 2023, but is picking up again in 2025.Inflation rate and consumer price indexInflation is commonly measured via the consumer price index, which illustrates changes to prices paid by consumers for a representative basket of goods and services. An annualized percentage change in the price index constitutes a measure of inflation. In order to maintain an inflation rate at a stable level, to enable the general public and businesses to plan their spending, the Government set a two percent inflation target for the Bank of England. The discounter boom The increase in food prices in the United Kingdom has shifted shopping behaviors amongst consumers. Value is now key and shoppers are changing their retailer loyalties. Aldi, the German discount supermarket retailer, overtook Morrisons as Great Britain's fourth largest supermarket in September of 2022. Aldi's market share reached double digits for the first time in April 2023. It is yet to be seen if Lidl, Aldi's discounter competitor, can also continue to rise up in the ranks and eventually take over Morrisons as the fifth leading food retailer.

Inflation Target: Bank of Indonesia: Upper Bound data was reported at 4.500 % in 2018. This records a decrease from the previous number of 5.000 % for 2017. Inflation Target: Bank of Indonesia: Upper Bound data is updated yearly, averaging 6.000 % from Dec 2001 (Median) to 2018, with 18 observations. The data reached an all-time high of 10.000 % in 2003 and a record low of 4.500 % in 2018. Inflation Target: Bank of Indonesia: Upper Bound data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Global Database’s Indonesia – Table ID.IA001: Consumer Price Index: Inflation Target.

The benchmark interest rate in the United Kingdom was last recorded at 4 percent. This dataset provides - United Kingdom Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

This dataset tracks the policy interest rates of the world’s top 8 central banks from 1980 to 2025, offering a unique longitudinal view into global monetary trends. Central banks included are: the Federal Reserve (USA), European Central Bank (ECB), Bank of England (BoE), Bank of Japan (BoJ), Bank of Canada (BoC), Reserve Bank of Australia (RBA), Swiss National Bank (SNB), and Sveriges Riksbank (Sweden). Note: The ECB's data begins in 1999, aligning with its establishment.

Ideal for time-series analysis, forecasting, and macroeconomic research, this dataset can be used to study inflation targeting regimes, financial crises, and policy divergence/convergence across developed economies.

Inflation Target: Bank of Indonesia: Lower Bound data was reported at 2.500 % in 2018. This records a decrease from the previous number of 3.000 % for 2017. Inflation Target: Bank of Indonesia: Lower Bound data is updated yearly, averaging 4.000 % from Dec 2001 (Median) to 2018, with 18 observations. The data reached an all-time high of 9.000 % in 2002 and a record low of 2.500 % in 2018. Inflation Target: Bank of Indonesia: Lower Bound data remains active status in CEIC and is reported by Bank of Indonesia. The data is categorized under Global Database’s Indonesia – Table ID.IA001: Consumer Price Index: Inflation Target.

Central Bank of Colombia: Inflation Target: Lower Limit data was reported at 2.000 % in Mar 2025. This stayed constant from the previous number of 2.000 % for Feb 2025. Central Bank of Colombia: Inflation Target: Lower Limit data is updated monthly, averaging 2.000 % from Jan 2003 (Median) to Mar 2025, with 267 observations. The data reached an all-time high of 5.000 % in Dec 2004 and a record low of 2.000 % in Mar 2025. Central Bank of Colombia: Inflation Target: Lower Limit data remains active status in CEIC and is reported by Bank of the Republic of Colombia. The data is categorized under Global Database’s Colombia – Table CO.I001: Consumer Price Index: Inflation Target.

Bank of Canada: Inflation Target data was reported at 2.000 % in 2026. This stayed constant from the previous number of 2.000 % for 2025. Bank of Canada: Inflation Target data is updated yearly, averaging 2.000 % from Dec 1992 (Median) to 2026, with 35 observations. The data reached an all-time high of 3.000 % in 1993 and a record low of 2.000 % in 2026. Bank of Canada: Inflation Target data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.I: Inflation Target.

Bank of Mexico: Inflation Target: Upper Limit data was reported at 4.000 % in 2020. This stayed constant from the previous number of 4.000 % for 2019. Bank of Mexico: Inflation Target: Upper Limit data is updated yearly, averaging 4.000 % from Dec 2003 (Median) to 2020, with 18 observations. The data reached an all-time high of 4.000 % in 2020 and a record low of 4.000 % in 2020. Bank of Mexico: Inflation Target: Upper Limit data remains active status in CEIC and is reported by Bank of Mexico. The data is categorized under Global Database’s Mexico – Table MX.I001: Consumer Price Index: Inflation Target.

Inflation is an important measure of any country’s economy, and the Retail Price Index (RPI) is one of the most widely used indicators in the United Kingdom, with the rate expected to have reached an annual average of 4.3 percent in 2025, compared with 3.6 percent in 2024. This followed 2022, when RPI inflation reached a rate of 11.6 percent, by far the highest annual rate during this provided time period. CPI vs RPI Although the Retail Price Index is a commonly utilized inflation indicator, the UK also uses a newer method of calculating inflation, the Consumer Price Index. The CPI, along with the CPIH (Consumer Price Index including owner occupiers' housing costs) are usually preferred by the UK government, but the RPI is still used in certain instances. Increases in rail fares for example, are calculated using the RPI, while increases in pension payments are calculated using CPI, when this is used as the uprating factor. The use of one inflation measure over the other can therefore have a significant impact on people’s lives in the UK. High inflation eases in 2024 Like the Retail Price Index, the Consumer Price Index inflation rate also reached a recent peak in October 2022. In that month, prices were rising by 11.1 percent and did not fall below double figures until April 2023. This fall was largely due to slower price increases in key sectors such as energy, which drove a significant amount of the 2022 wave of inflation. Inflation nevertheless remains elevated, fueled not only by high food inflation, but also by underlying core inflation. As of February 2025, the overall CPI inflation rate was 2.8 percent, although an uptick in inflation is expected later in the year, with a rate of 3.7 percent forecast for the third quarter of the year.

Central Bank of Paraguay: Inflation Target data was reported at 4.000 % in 2019. This stayed constant from the previous number of 4.000 % for 2018. Central Bank of Paraguay: Inflation Target data is updated yearly, averaging 4.500 % from Dec 2011 (Median) to 2019, with 9 observations. The data reached an all-time high of 5.000 % in 2014 and a record low of 4.000 % in 2019. Central Bank of Paraguay: Inflation Target data remains active status in CEIC and is reported by Central Bank of Paraguay. The data is categorized under Global Database’s Paraguay – Table PY.I001: Consumer Price Index: Inflation Target.

Central Bank of Paraguay: Inflation Target: Upper Limit data was reported at 6.000 % in 2019. This stayed constant from the previous number of 6.000 % for 2018. Central Bank of Paraguay: Inflation Target: Upper Limit data is updated yearly, averaging 6.500 % from Dec 2011 (Median) to 2019, with 9 observations. The data reached an all-time high of 7.500 % in 2013 and a record low of 6.000 % in 2019. Central Bank of Paraguay: Inflation Target: Upper Limit data remains active status in CEIC and is reported by Central Bank of Paraguay. The data is categorized under Global Database’s Paraguay – Table PY.I001: Consumer Price Index: Inflation Target.

The Ceramic Household and Ornamental Article Manufacturing industry’s revenue has been volatile in recent years. The industry has exhibited a slow recovery from pandemic-induced shutdowns and is navigating a tough landscape in downstream sectors like hospitality, caused by rampant inflation rates. However, direct sales to households and retailers have remained resilient, with consumers looking to spruce up their homes and valuing unique artisanal designs. This has allowed small manufacturers to remain competitive against bigger names in the industry like Churchill China, Steelite, Emma Bridgewater and Portmeirion, which account for over 40% of the market combined. Revenue is expected to climb at a compound annual rate of 3.9% over the five years through 2025-26 to £439.9 million. In 2025-26, revenue is expected to jump by 2.2%. The dominance of big companies has bolstered the industry’s profit margin, as these companies can diversify their operations across multiple buying markets and invest in an increasing number of automated processes to promote cost savings. Ceramic manufacturers face stiff competition from imports, particularly in basic household kitchenware and crockery markets. According to HMRC, low-cost imports from China and Thailand are becoming more prominent, with 60.2% of ceramic imports in 2024 originating from China. Anti-dumping tariffs are in place to try to curb the impact of imports from China, with these measures extended until 2029, according to the Trade Remedies Authority. Exports have been supported by mounting interest in British-manufactured goods in countries like South Korea and the Netherlands, with foreign markets valuing the unique designs available. Companies like Denby Potteries have successfully leveraged relationships with foreign markets like South Korea to expand revenue. Revenue is anticipated to climb at a compound annual rate of 0.2% in the five years through 2030-31 to £444 million. Rebounding domestic economic conditions will help expand household disposable incomes and support the hospitality and tourism sectors. According to the OBR, inflation is expected to ease, with the Bank of England’s 2% target rate expected to be hit in 2026-27. This will encourage consumers to eat out, prompting greater sales of ceramic goods to the hospitality sector. Imports from low-cost countries will intensify competition, aided by a recovering pound, making imports cheaper. Export sales are also expected to slump as uncertainty surrounding tariffs persists in the US, the most significant buying market for UK ceramics.

Central Bank of Uruguay: Inflation Target: Upper Limit data was reported at 7.000 % in Jul 2020. This stayed constant from the previous number of 7.000 % for Jun 2020. Central Bank of Uruguay: Inflation Target: Upper Limit data is updated monthly, averaging 7.000 % from Apr 2007 (Median) to Jul 2020, with 160 observations. The data reached an all-time high of 7.000 % in Jul 2020 and a record low of 6.000 % in Jun 2014. Central Bank of Uruguay: Inflation Target: Upper Limit data remains active status in CEIC and is reported by Central Bank of Uruguay. The data is categorized under Global Database’s Uruguay – Table UY.I001: Consumer Price Index: Inflation Target .

The U.S. federal funds effective rate underwent a dramatic reduction in early 2020 in response to the COVID-19 pandemic. The rate plummeted from 1.58 percent in February 2020 to 0.65 percent in March and further decreased to 0.05 percent in April. This sharp reduction, accompanied by the Federal Reserve's quantitative easing program, was implemented to stabilize the economy during the global health crisis. After maintaining historically low rates for nearly two years, the Federal Reserve began a series of rate hikes in early 2022, with the rate moving from 0.33 percent in April 2022 to 5.33 percent in August 2023. The rate remained unchanged for over a year before the Federal Reserve initiated its first rate cut in nearly three years in September 2024, bringing the rate to 5.13 percent. By December 2024, the rate was cut to 4.48 percent, signaling a shift in monetary policy in the second half of 2024. In January 2025, the Federal Reserve implemented another cut, setting the rate at 4.33 percent, which remained unchanged until September 2025, when another cut set the rate at 4.22 percent. In October 2025, the rate was further reduced to 4.09 percent. What is the federal funds effective rate? The U.S. federal funds effective rate determines the interest rate paid by depository institutions, such as banks and credit unions, that lend reserve balances to other depository institutions overnight. Changing the effective rate in times of crisis is a common way to stimulate the economy, as it has a significant impact on the whole economy, such as economic growth, employment, and inflation. Central bank policy rates The adjustment of interest rates in response to the COVID-19 pandemic was a coordinated global effort. In early 2020, central banks worldwide implemented aggressive monetary easing policies to combat the economic crisis. The U.S. Federal Reserve's dramatic reduction of its federal funds rate—from 1.58 percent in February 2020 to 0.05 percent by April—mirrored similar actions taken by central banks globally. While these low rates remained in place throughout 2021, mounting inflationary pressures led to a synchronized tightening cycle beginning in 2022, with central banks pushing rates to multi-year highs. By mid-2024, as inflation moderated across major economies, central banks began implementing their first rate cuts in several years, with the U.S. Federal Reserve, Bank of England, and European Central Bank all easing monetary policy.