Kevin Brown, savings specialist at Scottish Friendly comments on the latest UK inflation data

Kevin Brown, Savings Specialist at Scottish Friendly comments: “Inflation is continuing to prove its stickiness. Even a stark drop in energy prices has not been able to bring it down enough to hit the Monetary Policy Committee’s 2% target. While the inflation genie may be heading back into the bottle it remains to be seen if we can get the lid firmly back on and keep it there. That is more likely to make the MPC cagey to trim the base rate following its much-anticipated June meeting. Borrowers will be watching with bated breath and will be hoping they will start to loosen the fiscal straitjacket and ease the pressure on mortgage holders later this summer.

“It’s clear though that any loosening will be done gradually to ensure inflation does not escape and run riot again. For cash savers, rates remain above inflation but over the medium to longer-term the best place for savers for long-term growth potential is still likely to be through investing in stocks and shares as the base rate eventually starts to tick down.

"A more realistic inflation target may be needed in the future. Moving the target toward 2.5%, or even as much as 3%, would create a much more achievable and sustainable long-term target and give the bank greater flexibility in how they respond to future economic challenges, which will ultimately benefit consumers.”




Contact for more information:

Kevin Brown, PR & Communications, Scottish Friendly


[email protected]  


Editors notes:

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.

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.