Homeowners have been given a glimmer of hope as it appears that interest rates may not rise as high as initially feared. Official figures from the Office for National Statistics (ONS) have revealed that inflation eased back more than expected in June, with the Consumer Prices Index (CPI) falling to 7.9%, down from 8.7% in May.
This is the lowest rate since March 2022, and it is largely due to a decrease in food price inflation and a significant drop in fuel prices compared to the previous year.
The majority of economists had predicted that the figure would only fall to 8.2% in June. However, the unexpected drop has led financial markets to adjust their forecasts for the peak in interest rates.
Previously, they had anticipated rates of between 5.75% and 6% by the end of the year, but now they are revising their estimates to a range of 5.75% to 6%.
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