In light of the release of the latest inflation rate data, which has dropped to 6.8% in the year to July, personal finance experts reacting to the news with the comments:
Lily Megson, Policy Director at My Pension Expert said: “Inflation falling and wages rising will bring relief to Britons. But it might only be temporary. Indeed, inflation's persistent grip on people's finances is not set to loosen any time soon. Hardly a settling prospect for those in, or approaching, retirement.
“Whilst retirees can enjoy some reassurance that their state pension will increase in line with inflation, thanks to the triple lock, the Government cannot assume that this will fix the UK’s pension issues. More can and must be done to provide those approaching or in retirement with the necessary support to help them understand exactly how they can protect their pension from wider economic circumstances. Improving access to information via prioritising the pension dashboard, or improving access to advice, would be a strong starting point.
“The approach of just “waiting until inflation comes under control” is not fit for purpose. The Government must look to other areas of support to help people better understand their financial circumstances. Arguably, the better people feel more supported in their financial situation, the more in control they will feel of their situation – a feeling many people will value during this economically volatile period.”
Mohsin Rashid, CEO of ZIPZERO, said: “While this inflationary burden may have slightly eased, its weight continues to cripple millions of Briton’s finances.
“Everyday essentials likes clothing and groceries continue to get more and more expensive. And while savvy cost-cutting hacks like bargain hunting and using retail loyalty benefits will certainly lighten the load, they can ultimately only go so far.
“Let us not become complacent: now is the time to dish out the support needed to pull consumers back from the cliff’s edge. Support is urgently needed from businesses and the government alike. For businesses – namely retailers – that means cutting prices where possible and rewarding customer loyalty. For the government, cracking down on any instances of ‘greedflation’ is a must.”
Andy Mielczarek, Founder and CEO of SmartSave, a Chetwood Financial company, said: “Although the picture appears to be improving in certain corners of the economy, there is still a long way to go before inflation returns to manageable levels. Rising wages are finally easing pressure on some UK households, but savers could be in for a shock next month if inflation figures rise again.
"With further interest rates hikes already in the pipeline, savers should be mindful of the fact that banks still aren’t passing on every increase to their customers in the form of better rates. Those who haven’t checked their current rate would be wise to do so, as they may need to act quickly to lock in a better deal.
“Rates on easy-access accounts are rising, but they are still lacklustre compared to fixed-term products. Many one-year fixes are currently topping the base rate providing greater returns for those who don't need immediate access to cash.”