The Office for National Statistics (ONS) confirmed inflation has eased to 8.7% in April down from 10.1% in March, following a recent peak of 11.1% in October 2022. The easing has been attributed to gas and electricity price changes while other categories such as recreation, alcohol, tobacco, communication and transport increased.
Although headline inflation has fallen, core inflation (excluding food and energy) is higher than expected hitting a 30 year high which means lenders are preparing to factor in a higher peak in the Base Rate, predicted to rise over 5%, as gilt yields and and swap rates shot up earlier today.
Given the latest news we are recommending anybody on Standard Variable Rate (SVR), or waiting hoping to see rates fall, should contact us and look to secure a new rate sooner rather than later.