How UK inflation falling to 6.8 percent could affect interest rates and your mortgage
manchestereveningnews.co.ukInflation has slowed down to its lowest rate in 17 months in July, according to the latest official figures. The Office for National Statistics (ONS) has said that Consumer Prices Index inflation was recorded at 6.8 percent last month, which has come down from 7.9 percent in June.
This is the lowest rate the UK has seen since February 2022 and has been put down to a fall in energy prices and a slowdown in food price increases.
But with the Government's target to bring inflation down to 2 percent, there is still a long way to go. The Bank of England has been raising interest rates in a bid to help lower inflation, with the current base rate now at 5.25 percent - which is now the highest rate seen since March 2008 and marks the 14th consecutive rise. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features. Despite signs of inflation falling, millions of people are still struggling with the cost of living and the impact that high interest rates are having on their mortgage repayments.
Homeowners across the UK have seen their monthly mortgage costs soar, particular those with a variable rate mortgage or a fixed-rate deal coming to an end.
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