Good news as UK inflation eases, but that’s only part of the story

Sarah Pennells, Consumer Finance Specialist comments on this morning’s Office of National Statistics data:

“The good news is that the main consumer inflation index has fallen slightly again, following ten increases in the Bank of England base rate - but that only tells part of the story.

“Price rises continue to outpace wage increases, meaning households are seeing the purchasing power of their money decline even further, putting further pressure on their budgets already stretched after Christmas spending and winter bills.

“Our research shows that one in five people started the year in debt as a result of festive celebrations. Against this backdrop of rising prices and spiralling mortgage payments, households may look for further cutbacks in an effort to stick to their budgets.”

If customers are struggling to keep up with mortgage or debt repayments, there are steps they can take and organisations that can help. Read our guide on how to manage your debt.