Author: Sam Allcock

Irish inflation rose to 3.7% in August 2026, marking an increase from 3.4% in July and showing that price pressures remain above the European Central Bank’s 2% medium-term target. The latest figures show that housing and energy costs, education and transport are among the most important sources of price increases. The Central Bank of Ireland expects inflation, measured by the Harmonised Index of Consumer Prices (HICP), to average 3.4% in 2026, before easing to 3.1% in 2027 and 2.0% in 2028. However, the outlook remains sensitive to energy prices, global developments and domestic services inflation. For households, the story is…

Ireland’s interest-rate environment changed again on 16 September 2026, when the European Central Bank’s latest 25-basis-point rate increase took effect. The ECB’s deposit facility rate is now 2.50%, while the main refinancing rate is 2.65%. The increase comes as inflation remains above the ECB’s 2% target and energy costs continue to create pressure across the euro area. For people and businesses in Ireland, the important question is not simply what the ECB rate is. It is how the change affects mortgages, savings, borrowing costs and the wider economy. Key facts Indicator Latest figure ECB deposit facility rate 2.50% ECB main…

UK inflation rose to 2.9% in July 2026, up from 2.6% in June, marking the first increase in the annual CPI inflation rate since March. At the same time, CPIH inflation, which includes owner-occupiers’ housing costs, reached 3.1%. For households, the latest figures matter because higher prices can reduce purchasing power, particularly when essential costs such as energy and housing rise quickly. For businesses, inflation can increase labour, energy and supply-chain costs and create difficult decisions over pricing, investment and employment. The picture is also important for interest rates. The Bank of England held Bank Rate at 3.75% in July,…

UK inflation has moved higher again, but the latest data show that the story is changing. The Consumer Prices Index (CPI) rose by 2.9% in the 12 months to July 2026, up from 2.6% in June, according to the Office for National Statistics (ONS). CPIH, which includes owner-occupiers’ housing costs, rose by 3.1%. The important question is no longer simply why prices are rising. It is which prices are rising fastest — and how persistent those pressures are likely to be. Energy has become a major source of pressure again. Housing costs remain elevated, services inflation is still above the…

UK interest rates are unlikely to fall again in the immediate future, despite signs that the labour market and parts of the economy are weakening. The Bank of England has kept Bank Rate at 3.75%, with its latest decision on 30 July producing a 6–3 vote to hold rates. Three members of the Monetary Policy Committee wanted to raise Bank Rate to 4%. The next scheduled decision is on 17 September 2026. Since that decision, the inflation picture has become more difficult for policymakers. UK CPI inflation increased from 2.6% in June to 2.9% in July, moving further above the…

The Bank of England interest rate is 3.75% as of 25 August 2026, after policymakers voted to leave Bank Rate unchanged for a fifth consecutive meeting. The decision is becoming more significant for households because UK inflation has started rising again. Consumer price inflation reached 2.9% in July, up from 2.6% in June, while the Bank has warned that inflation could rise further later this year. For borrowers, the picture is mixed. Tracker and some variable-rate mortgages remain exposed to Bank Rate, while fixed mortgage rates are influenced heavily by financial-market expectations. For savers, competitive accounts can still offer returns…

The UK economy is growing, but the recovery is far from straightforward. Official figures show real GDP increased 0.4% in the second quarter of 2026, following 0.6% growth in the first quarter. The economy was 1.2% larger than a year earlier, while monthly GDP increased 0.3% in June. At first glance, that looks encouraging. But inflation has started moving higher again, the labour market is losing momentum and the Bank of England is keeping interest rates at 3.75% while watching for signs that renewed energy-price pressures could become embedded in wages and prices. So what is actually happening to the…

The UK economy is still growing in 2026, but the recovery is proving uneven. Real GDP increased by 0.4% in the second quarter of 2026, following 0.6% growth in the first quarter. At the same time, inflation accelerated to 2.9% in July, while the labour market showed signs of losing momentum, with vacancies falling to 707,000. The Bank of England has kept Bank Rate at 3.75%, but the policy outlook remains unusually difficult. Inflation is above the Bank’s 2% target, while weaker hiring and slower private-sector wage growth suggest that the economy also faces softer domestic demand. For households, businesses…