Inflation fell in February to 3.4%, which is the lowest it has been for two and a half years.

Inflation fell in February to 3.4%, which is the lowest it has been for two and a half years.

This is a 0.6% drop from January 2024 and may be an incentive for the Bank of England to start looking at interest rate cuts as we near the inflation target of 2%.

“Today’s Consumer Prices Index, from the Office for National Statistics (ONS), shows that prices rose by 0.6% last month, compared with a rise of 1.1% in February 2023.” (Forbes Advisor, 2024). https://www.forbes.com/uk/advisor/personal-finance/2024/03/20/inflation-rate-update/

It has been said that the fall of inflation has been due mainly due to Food and non-alcoholic drinks, cafes and restaurant prices that drove the fall, but alcohol, tobacco, clothing and footwear prices also eased.

However, housing and fuel prices continued to rise rapidly.

“One of the key factors driving up housing costs was the average price of renting property privately, which jumped by 9% in the year to February 2024, up from 8.5% in the previous 12 months”. (BBC.co.uk, 2024)

While the Bank of England did not change their base rate today, there is hope the rates will change by summer. This will bring excitement across the board, not only just for those in the property market but those looking to open savings accounts or take out finance products.

Currently, for the last four months, the Bank of England has kept the interest rates at 5.25% and today was the fifth consecutive month where there was no change.

https://www.bbc.co.uk/news/business-68597055

If you have any questions on the housing market, please call us today on 01233 501601.