A key part of the work of the Bank is to set monetary policy to keep inflation low and in line with the Government's inflation target of 2%. But why does inflation matter? What causes it? And how is it controlled?
The Bank offers a range of engaging tools that can be used to explore inflation and answer many of the questions you might have.
|The Monetary Policy Balloon gives you the chance to set interest rates to control inflation. Your job is to keep the balloon flying steadily, just like the Bank's Monetary Policy Committee tries to keep inflation at the 2% target.
But if interest rates are almost at zero, the Bank can inject money directly into the economy. That process is sometimes known as 'Quantitative Easing' and to learn more you can watch the Bank's short animated film, 'Quantitative Easing - How it Works'.
The Inflation Calculator shows how the cost of goods and services has changed since 1750. While the Inflation Chart picks out a dozen key episodes in the history of inflation.
The Inflation Map
explores the difficulties that inflation has caused in countries around the world. And in the Prices Machine
you can see how the cost of a selection of everyday goods and services has changed since 1955.