The Office of National Statistics today issued an update on inflation. No surprise that it is still moving upwards although there is some positives in there which will be welcomed by some.
If anything in here confuses I have done a guide on inflation you can refer to.
The index most often referred to that measures inflation. It was at 9.9% in August which was down previously from 10.1% but now sits at 10.1%. Not much of an increase but would have been slightly higher had we not seen the cost of some items coming down.
Transport decreased the most in the most recent period, largely due to fuel prices coming down. There were minor reductions in Communication, Recreation and education.
Food, beverages, and eating out along with goods and services went up.
CPIH which is CPI with the cost of housing included is also up. It was 8.6% which was down from 8.8% previously. Now risen back to 8.8%. Housing costs remained the same the increase was for the same reasons CPI increased.
There have been clear signs that the Monetary Policy Committee (MPC) will increase interest rates again when they meet next on the 3rd of November and it may be a big one. An increase of 0.5% is likely to be the minimum but some are speculating that 0.75% is possible. Within the last couple of weeks 1% and 1.25% were options but that appears unlikely unless something major happens.
At the last MPC meeting on the 22nd of September, the voting was mixed. 5-3 in favour of a 0.5% increase vs 0.75%. There was one vote by new member Swati Dhingra to decrease by 0.25%. Not sure she was at the right meeting.
Member | Direction | Amount |
---|---|---|
Andew Bailey (Governor) | increase | 0.5% |
Ben Broadbent | increase | 0.5% |
Jon Cunliffe | increase | 0.5% |
Huw Pill | increase | 0.5% |
Silvana Tenreyro | increase | 0.5% |
Jonathan Haskel | increase | 0.75% |
Catherine Mann | increase | 0.75% |
Dave Ramsden | increase | 0.75% |
Swati Dhingra | Decrease | 0.25% |
At this stage, we are waiting for the government to do something. Not sure right now whether Liz Truss is moving forward or backtracking each day. I have a very strong suspicion she won't be PM for much longer. Someone needs to take control and it's not going to be Liz. One thing is for sure, misery is on the menu for a good while longer and it is certainly going to be hovering into 2023!
Lee Wisener, CeMAP, CeRER, CeFAP
Having worked in the mortgage industry for over 20 years I have always wanted to build a website dedicated to the subject. Also being a geek when it comes to the internet all I needed was time and I could both build the site from scratch and fill it with content. This is it!
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