Interest rates were raised to their highest level in almost 15 years to slow the rapid rise in prices.
The Bank of England hiked interest rates from 4.25% to 4.5% – raising borrowing costs for the 12th straight month.
It will mean higher mortgage and loan payments for some, but could benefit savers.
UK interest rates are now at their highest since October 2008, at the height of the global financial crisis, when several banks collapsed.
Raising interest rates can make people more likely to save and borrow less.
In theory, this means they have less money to spend and therefore buy fewer things, which should help keep prices from rising as quickly.
It is also becoming more difficult for companies to borrow and expand.
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