The Bank of England has a target to keep inflation at 2%, but the current rate is still more than four times that.

Its traditional response to inflation rising is to put up interest rates.

This makes borrowing more expensive, and can mean some people with mortgages see their monthly payments go up. Some saving rates also increase.

When people have less money to spend, they tend to buy fewer things, which can reduce demand for goods and slow price rises.

Dharshini David
Global trade correspondent

As the school year ends, the UK is near the bottom of the class for inflation.

Few countries were shielded from soaring food and fuel prices last year.

But high inflation has been more persistent in the UK, and is expected to remain above 8% in June, higher than in the US or EU food prices too are expected to have risen further - albeit more slowly than of late.

And strip out the likes of food and energy, and so-called core inflation may have remained near a 30-year high.

That in part reflects high costs due to labour shortages - but also that there remains an appetite and ability by some to spend more on non-essentials. It’s that spending the Bank of England is aiming at when it raises interest rates to try and curb inflation.

So analysts reckon rates may have further to rise. There’s a cost in itself to taming inflation

Inflation reached a 40-year high in last year, pushing the cost of living up and leaving many people struggling with higher food prices and energy bills.

It was 11.1% back in October 2022, and is on its way down now but it is still at 8.7%.

Part of the Bank of England’s job is to keep inflation at a target rate of 2% - far lower than the current rate.

In response to rising prices, the Bank has recently increased interest rates, which makes the cost of borrowing money more expensive.

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

Soaring food and energy bills have been pushing prices up.

Although wholesale gas prices have come down very sharply since last year, they are still much higher than before the Covid pandemic and Russia’s war in Ukraine, helping to push up the cost of living.

The soaring cost of energy has been a key factor driving the UK’s high inflation rate in recent months. Oil and gas were in greater demand as life got back to normal after Covid.

At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.

Good morning and thanks for joining us as we find out the rate of price rises in the UK.

At 07:00 BST, the Office for National Statistics (ONS) will release the inflation figure for June. It’s a percentage which tells us how fast prices are rising in the UK - this gives us an idea of the cost of living.

Overall inflation stayed at 8.7% in April and May but it had been as high as 11.1% in October.

Stay with us this morning - we're here to explain exactly what it all means for you.