Kevin Brown, savings specialist, comments today’s inflation figures from the Office of National Statistics.

February rate cut still looking fanciful, despite latest inflation data.  Kevin Brown, savings specialist at Scottish Friendly comments on this morning’s inflation figures from the ONS:

“While it is positive to see inflation’s worrying bounce-back come to a stop, the essential point here is that it remains too high. Interest rate setters will be reading these numbers with continued unease, as will the Government.

“Rate setters will be using these figures as their basis for the first rate decision of 2025 next month. It still appears fanciful that we might get one at the first meeting. There’s a good indication that we won’t be getting rate cuts as quickly as earlier believed, which households are clamouring for, as the Monetary Policy Committee's number one priority is managing price rises.

“Despite inflation coming down slightly, the message for households is still clear: we’re not out of the woods yet. The only ray of hope at the moment is that wage growth is still relatively strong. However, this in itself won’t help inflation settle.

“For anyone who finds themselves able to set aside some money each month, ensuring a solid rainy-day fund is in place is essential. Beyond that, for those saving for the longer-term,  consideration should perhaps be made at this point for investments, as savings rates are unfortunately continuing to weaken.”