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UK inflation holds steady despite hotel prices soaring

July 17, 2024
in Business
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UK inflation holds steady despite hotel prices soaring
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Mrs Morgan said the higher mortgage payments had restricted the things they were able to do with their three older children.

“We can’t have family holidays, we’ve not been able to do so much with the children….it affects where I shop for food, I’m always looking for discounts. We sit together, we look at what our costs are, where we can cut back and look at a budget.”

She said was optimistic, however, that the UK economy was over the worst and that better times were ahead.

“I think sometimes the doom and gloom that we talk about can actually make us feel very negative….It you can feel hopeless,” she said.

“But if we have a good conversation about what is possible, and working with what we’ve got, we can have a better conversation about it,” she added.

The underlying measures of inflation being watched closely by the Bank of England also did not change, according to the latest data.

Inflation in the services sector, for example, remained at 5.7%, while core inflation, which strips out the effects of more volatile items like energy prices, held at 3.5%.

Alongside some other stronger figures for the economy in recent days, it may give some pause for thought for members of the Bank of England committee deciding interest rates next month.

On Tuesday, the International Monetary Fund listed the UK among countries who might need to keep interest rates “higher for even longer” than originally anticipated to squeeze inflation out of the system.

Markets have been anticipating that rate cuts will start on 1 August, helping fixed mortgage rates fall.

The latest numbers suggest it will be a finely balanced decision.

Credit: Source link

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