The relationship between creating money and inflation

Mr Carnihan made this Freedom of Information request to Office for National Statistics Automatic anti-spam measures are in place for this older request. Please let us know if a further response is expected or if you are having trouble responding.

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I'm studying economics and wondered if you could help me understand if you have any data that shows a cause and effect relationship between the amount of money the Bank of England and private banks create and changes in the rate of inflation.

More specifically, can you share any data with me that answers these two questions:

Does the rate of inflation increase whenever the Bank of England or private banks creates banknotes, central bank reserves or electronic bank deposits for bank loans?

Does the rate of inflation decrease if the Bank of England withdraws banknotes or central bank reserves, or if private banks create and lend fewer electronic bank deposits?

Kind regards,

Mr Carnihan

FOI Team, Office for National Statistics

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FOI Team, Office for National Statistics

Our Reference: FOI-2023-1245


Dear Mr Carnihan,


Thank you for your email requesting data pertaining to inflation.


I am writing to confirm that the Office for National Statistics has now
completed its search for the information which you requested and the
response can be found here:


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The Freedom of Information Team | UK Statistics Authority | Awdurdod
Ystadegau’r Deyrnas Unedig

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