Kevin Brown, savings specialist at Scottish Friendly comments on the fall in inflation to 3.4%
“The announcement today of a fall in the headline rate of inflation is not entirely unsurprising, but certainly welcome for both the Bank of England and UK consumers. It’s the first recorded fall in the consumer price index since November 2023 and the 3.4% figure announced today is edging us closer towards the 2% target set by the Bank of England.
“However, recent months have proven the path to tame real inflation isn’t running smoothly. A slight uptick in December 2023 was followed by an unchanged rate in January which illustrates just how hard it has been to keep the downward pressure on price increases.
“The Monetary Policy Committee (MPC) raising the base rate clearly has had some effect. But that battle continues and there is still plenty at stake for consumers, homeowners, and the wider UK economy. All eyes will now be on the forthcoming MPC announcement on Thursday.
“Mortgage borrowers heading towards the end of their fixed deals will certainly hope a rate cut is on the way as recent weeks have seen the cost of borrowing increase as the spectre of sticky inflation refuses to budge.
“Inflation beating options remain available for those savers that prefer cash accounts. However, for anyone considering the best home for their money over the medium to long term, we may see cash rates coming down if the MPC does start to win the battle and base rate starts to drift downwards too. Therefore, those thinking longer-term might start to consider investment options to try and generate inflation beating returns consistently.”
Contacts for more information
Kevin Brown, PR & Communication, Scottish Friendly
07512194336
Editors notes:
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.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors 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.
In recent years Scottish Friendly has significantly restructured its business. The Group has flourished through a three-part growth strategy of organic growth, mergers and acquisitions, and business process outsourcing.
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.