Inflation relief gives The Chancellor a boost before Spring Statement

Kevin Brown, savings specialist at Scottish Friendly comments on this morning’s inflation figures:

“The Chancellor finally got some good news ahead of the Spring Statement. The latest CPI data shows inflation running cooler than expected, reversing the worrying data in January. It makes a rate cut more likely at the next Monetary Policy Committee meeting.

“That said, there is no room for complacency. There are more inflationary pressures coming down the road. A raft of household bills will rise significantly over the next few weeks, including water, council tax, energy and broadband. UK businesses will also need to digest the rise in Employers’ National Insurance, which may have a knock-on effect on prices.

“The Monetary Policy Committee still expects inflation to peak at around 3.7%, before starting to fall in the latter part of 2025. Households and businesses will need to brace themselves for some pain in the interim, though this may be cushioned by falling interest rates.

“Ensuring your finances are in robust shape ahead of a tougher period is vital. Stock market investment may provide a better defence against inflationary pressure on your savings, while cash savings may struggle to keep pace as interest rates fall.”

-ENDS-

For more information:

Heather McRoberts, PR & Communications, Scottish Friendly [email protected]

Disclaimer

Remember that the value of investments can go down as well as up and you could get back less than you paid in.

Past performance is no guide to future results. Tax treatment depends on individual circumstances which can change in the future.

Editors notes:

About Scottish Friendly

Scottish Friendly is a leading UK mutual life and investments organisation. It provides its members and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.

Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance. www.scottishfriendly.co.uk

Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ

Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.