Households in the UK have been detrimentally affected financially by the ongoing cost of living crisis but recent forecasts suggest this economic downturn will improve in the near future.
Inflation has been one of the main contributing factors to the rise in the cost of living in the past year.
The rate of inflation would drop below 3% by December.
Despite continuing global instability, inflation in the UK will fall from 10.7 per cent in the last quarter of last year to 2.9 per cent by the end of 2023.
High inflation has been around for well over a year now. It’s causing our savings to erode in value, and making our mortgages expensive.
“If inflation drops to a more manageable level then the Bank of England will halt interest rate rises, and may even start to lower the base rate, helping to push down our future mortgage repayments.”
Despite still being extremely high, CPI inflation has dropped slowly for three consecutive months which suggests improvements in the UK’s economy.
In response to inflation, the Bank of England has opted to raise the country’s base rate ten times in a row in the past 12 months.