Inflation falls to lowest level in over a year

Bradley Post, MD of RIFT Tax Refunds, commented:

“Despite an unexpected increase at the start of the year, the rate of inflation has continued to ease over the last few months, albeit it remains slightly higher than widely anticipated.

This will be welcome news to the many households who are still feeling the squeeze of the cost of living crisis, but who should now see a reduction in the previously high running costs of their home.

While the reduction in these core household costs has been offset by increases in recreation and culture, alcohol and tobacco, those struggling to make ends meet will be far better positioned to negotiate a hike in these non-essential outgoings.”

Jason Ferrando, CEO of easyMoney commented:

“The latest look at inflation suggests that the Bank of England’s aggressive approach to curb inflation via a string of interest rate hikes is now starting to yield results, with the current rate of inflation dropping below 10% for the first time since August of last year and now at its lowest since March 2022.

This latest reduction should also help to steady the ship with respect to the property market and the cost of borrowing, with many mortgage lenders expected to now reduce rates. In doing so, we should see a boost to homebuyer sentiment, which in turn, should help to breathe new life into the market and maintain the ongoing growth seen with respect to house prices.

All eyes will now be on the Bank of England and how they choose to proceed come the end of next month. While we’re heading in the right direction, the job certainly isn’t done yet and so a reduction to the base rate is far from guaranteed.”