The Brexit economy: the storm clouds are gathering

Guardian analysis of key economic figures paints a picture of deepening gloom, with rising inflation denting consumer spending and investment

The Bank of England is seriously considering raising rates for the first time in 10 years against a backdrop of lacklustre economic growth, as a Guardian analysis shows the Brexit vote sapping business confidence and hitting household income.

As Mark Carney, the Bank's governor, prepares to hike the cost of borrowing for the first time since 2007 from as soon as next week, key barometers of economic strength are faltering. Nevertheless, City analysts expect Carney and his panel of rate setters on the monetary policy committee to vote for a rate hike on 2 November.

Related: Can an interest rate rise halt UK inflation? Experts debate the data

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.

Related: Can an interest rate rise halt UK inflation? Experts debate the data