Mortgage rates relief after inflation sees bigger than expected drop ahead of crunch decision

July 19, 2023 Mark Paul Cervantes Economy, Inflation, International, Mortage News, Top News Comments Off on Mortgage rates relief after inflation sees bigger than expected drop ahead of crunch decision
inflation

Inflation in Britain has dropped to 7.9 per cent in the year to June, according to the Office for National Statistics (ONS).

Despite inflation dropping more than expected, it still remains high – but is a sign of some respite for mortgage holders.

The consumer price index (CPI) measure of inflation shows prices are still rising, just at a slower pace than before, as the rate fell from 8.7 per cent in the year to May.

Most economists had expected the rate of inflation to fall to 8.2 per cent in June.

The ONS said falling fuel prices was the biggest driver behind the drop, while food price inflation also pared back to 17.3 per cent from 18.7 per cent in May, though still painfully high.

June’s figures could see the Bank of England opt for a smaller increase in interest rates at its next meeting in August after June’s half a percentage point shock hike to 5 per cent, according to experts.

Tory MP Anthony Browne said the announcement “starts to reduce pressure on mortgage rates” but more still needs to be done.

He tweeted: “Great news that headline inflation has fallen faster than expected to 7.9 per cent, now over 3 per cent down from the peak last year.

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Source:
ENB
Sandstone Group

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