Inflation rate moderates
The Consumer Price Index (CPI) fell to 9.9% in the 12 months to August 2022, down from 10.1% July, according to the Office for National Statistics (ONS). Lower petrol prices were the main reason the pace of inflation eased slightly in August. Food prices continued to rise in the month, partially offsetting the fall in fuel prices. Although the rate was not as high as many economists had expected in August, there are warnings that CPI is likely to rise again later in 2022.
The data also outlined that average wages, excluding bonuses, increased by 5.2% in News in Review 21 September 2022 “With admiration we recall her lifelong sense of duty and dedication to her people” the three months to July 2022, but with inflation taken into account, the real value of that pay fell by 2.8%. With the same cost issues impacting countries worldwide, ONS has said that UK inflation is similar to the European Union average at present.
The Bank of England has raised interest rates today by another 50 basis points, taking it from 1.75% to 2.25% and even forecasting that the UK economy is already in recession. Now is a great time to ensure that you have the right planning in place to ensure you and your family are protected by the changing landscape.