Inflation falls – September 2023
20.09.23There was some good news today in the fight against inflation as the very latest data showed that despite a feared increase last month, driven mainly by fuel costs, the headline Consumer Price Index (CPI) is 6.7%, which is a slight decrease from 6.8% in July.
What is more important is that the core inflation figure also fell to 6.2% down from 6.9% in July.
This should translate into better news for interest rates and mortgage holders over time.
This is a set of figures that many had crossed their fingers for and the fall in core inflation will come as a relief to Government and the public alike.
Whilst the inflation battle is not won yet, this is a substantial advance, and the Bank of England should pause any further action to see if this trend continues rather than go too far and risk causing economic woe.
I would expect to see SWAP rates continue to ease over the coming days which will give lenders more ammunition to escalate the rate war which has been brewing for the last few weeks.
We have already seen the first fixed rates under 5% and we are now likely to see more choice at this level.
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Written by Andrew Montlake
Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.
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