The most recent figures from the Office for National Statistics, released last week, show that inflation for the year to August 2024 held steady at 2.2%.
The largest upward pressure on the rate came from an increase in airfares compared to last year. However, this was balanced by decreases in the cost of motor fuels, as well as in restaurants and hotels.
The Bank of England met last Thursday to review the base interest rate and opted to keep it at 5%. While inflation remains slightly above the Bank’s target, this aligns with their projections of a rise towards the end of the year before it is expected to decrease again next year. The Bank’s policymakers decided that no further rate adjustments were needed at this time.
If you need assistance reviewing your financial arrangements to ensure you’re paying the lowest possible rates, please don’t hesitate to give us a call. We’d be more than happy to assist you!
See: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest