The ONS will publish figures on Wednesday detailing how the average prices of goods and services changed last month.
S&P Global has said that continued deceleration in food price inflation will likely have contributed to the fall, and a spike in global oil prices will have prevented this fall being more dramatic.The base rate currently sits at 5.25 per cent, after the Bank opted to hold rates in its September meeting for the first time in more than 18 months.
These mortgages – generally the cheapest – are already slowly falling, as banks and other lenders have forecast that rates are at their peak, and there is a small “rate war” between lenders to attract business after a slow property market in the first part of this year meant many were behind target for deals secured. If inflation falls steadily as expected, then this will likely continue.
Peter Stamford, director at Moor Mortgages, said that if inflation dipped “we could see rates inching down as lenders hustle for year-end business.”Inflation is bad news for savers as it erodes the value of money held in the bank. Even though the best paying easy access accounts are offering 5 per cent or more, inflation is still higher – meaning your savings are effectively worth less each year, comparatively speaking, even with the interest added.
This is not guaranteed, and on various occasions in the past decade, the government had opted for lower increases.more children being pushed into poverty.