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, with assets under management of £147 billion, 8.7 million policies in force and over 4,200 employees. Figures quoted are as at 31 December 2022. Learn more at royallondon.com
More press releases you might like
Royal London announces major new charity partnership with Cancer Research UK aimed at tackling cancer inequalities
The partnership will fund research into hard-to-treat cancers and initiatives to improve the pathway to early diagnosis, as well as support programmes that increase cancer awareness in communities.
Today's ONS labour market figures show health related inactivity at record highs
Clare Moffat, pensions expert, comments on the UK labour market data released by the Office for National Statistics (ONS).
Rate rise worry for homeowners
Sarah Pennells, Consumer Finance Specialist, comments on the Bank of England's decision to increase interest rates.