Summary
Inflation in the UK has slowed to 3.6%, which means prices are still increasing but at a slower rate. This change might lead to lower interest rates for mortgages, providing relief to homeowners. However, food prices continue to rise, making grocery shopping more expensive for consumers.
Key Facts
- The UK inflation rate has decreased to 3.6%, meaning prices are rising more slowly.
- The Office for National Statistics (ONS) reports inflation rates monthly.
- Food prices, including items like fish, vegetables, and chocolate, have increased, while fruit prices have slightly decreased.
- The Bank of England may reduce interest rates to get closer to its target inflation rate of 2%.
- Major lenders are already lowering mortgage rates—average rates for new two-year fixed deals have dropped to 4.88%.
- First-time buyers are seeing some of the lowest mortgage rates in years if they have a small deposit.
- Borrowing costs might drop because lenders expect a slow housing market during the Christmas season.
- Despite lower borrowing costs, savings rates are not increasing due to limited competition among lenders.
