Inflation nation? March inflation data shows surprising stickiness.
18.04.24The UK is still an inflation nation, as the recently published March 2024 inflation data showed that whilst the headline is that inflation fell once more, the reality was that it was not as much as expected.
The Consumer Prices Index (CPI) rose by 3.2% in the 12 months to March 2024, down from 3.4% in February. On a monthly basis, CPI rose by 0.6% in March 2024, compared with a rise of 0.8% in March 2023.
The largest downward contribution to the monthly change in both CPIH and CPI annual rates came from food, with prices rising by less than a year ago, while the largest, partially offsetting, upward contribution came from motor fuels, with prices rising this year but falling a year ago.
Markets are now predicting only one to one and a half rate cuts, (0.33%) this year, and possibly nothing changing now until September.
Andrew Montlake, MD of Coreco mortgage brokers commented, “Inflation continues to defy expectations with smaller than expected falls showing the UK is still an inflation nation and proving just how tough the last sprint to the 2% finish line will be.
“Figures such as these inevitably make the Bank of England jittery and push the chances of a summer rate cut back into the long grass.
“It could well be Autumn now before we see any action on this front, but there is an awful lot more data to come that could change this yet again.
“Borrowers waiting for an early spring boost look set to be disappointed, proving that trying to play the markets is fraught with danger.”
If you want to know how the latest inflation figures affect your mortgage requirements you can speak to one of our friendly, down-to-earth advisers by calling 020 7220 5110 or clicking here.
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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