The Bank of England put interest rates up to 4.25% at midday today (March 23).

The rate is up from 4%, as the UK's central bank attempts to slow rising prices, as reported by the BBC.

The Bank of England's decision to lift rates for the 11th consecutive time comes after the latest figures showed the cost of living has risen by more than expected.

Inflation jumped to 10.4% in the year to February, despite predictions that it would go down.

The rise in interest rates means the cost of paying back loans and credit cards is more expensive, but people should get a better return on their savings.

The theory is that this means people will spend less on goods and services and, as the demand goes down, the pace of price rises will slow and help to get inflation under control.

Punchline said: "With food prices still going through the roof, people can't cut the amount of food they eat and they still need to use energy. Even with government help, the cost of energy is putting a real squeeze on business and families alike. So it remains to be seen if this rise in interest rates will make a difference."