Inflation falls but concerns remain
Commenting on this morning’s inflation figures, Sarah Pennells, Consumer Finance Specialist at Royal London said:
"The good news is that the main consumer inflation index has fallen again, following 12 increases in the Bank of England base rate which have pushed up mortgage and borrowing costs for millions on top of higher energy, food and other household bills.
"Inflation, as measured by the Consumer Prices Index, has been around the 10% level for a year now, with food price inflation often sharply higher. People have been making cutbacks across their everyday spending in an attempt to make their money stretch, but with prices still rising by more than wages, it’s becoming increasingly difficult.
"Our research shows that one in three people are overdrawn or have to borrow before the end of the month. Some people – around one in five – plan on using savings to help pay for the cost of living, but that’s not an option for everyone as millions of people have less than £100 in savings. There’s a real worry that, even if inflation reduces further, more people will be pushed into financial crisis."
About Royal London
Royal London is the largest mutual life, pensions and investment company in the UK, and in the top 25 mutuals globally, with assets under management of £153 billion, 8.6 million policies in force and over 4,100 employees. Figures quoted are as at 30 June 2023. Learn more at royallondon.com.
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