UK inflation rate inches upwards
The Consumer Price Index (CPI), a key measure of inflation in the UK, rose during October for the first time in eight months. The CPI inched up from 1.1% in September to 1.5% in October, the first time a rise had been recorded since February earlier this year. The Retail Price Index (RPI) also rose from -1.4% to -0.8%.
Despite the rise in inflation an increase in interest rates was said to remain unlikely in the short term.
David Marshall, business analyst with ESPC said: "A rise in inflation was not unexpected. Fuel prices fell sharply by over 6% between September and October last year and such a large decrease was always unlikely to be replicated this year. The Monetary Policy Committee [responsible for setting interest rates] had indicated that they expected inflation to be volatile over the short-term so these figures are unlikely to come as a surprise.
With that said, those looking to buy a property would be well advised to consider how a change in interest rates would affect their repayments. Interest rates are unlikely to rise any time soon, but they are currently at historically low levels and won’t remain there forever, so it’s important that people consider how they will be affected when rates return to more 'normal' levels."