27 Jun 2023
What is the UK Inflation Rate?
Inflation simply put, is the increase in the price of something over time. The Office for National Statistics (ONS) tracks the prices of hundreds of everyday items and these items are updated to reflect shopping trends.
Inflation includes the price of energy, food, alcohol, and tobacco. Unfortunately, inflation has risen due to:
- Sky-high food and energy bills
- Oil and gas were in greater demand once a ‘normal way of living’ resumed post-Covid
- There was a reduced amount of grain available which pushed up global food prices
How does raising interest rates help to tackle inflation?
As we have seen recently, the Bank of England has continually increased interest rates, this has been done in a bid to help slow down inflation. This is a traditional response to rising inflation. By making borrowing money more expensive, this in turn makes monthly mortgage payments more (as well as some saving rates increase). When people have less money to spend, they will therefore spend less in purchases, reducing the demand for goods and slowing price rises.
When will inflation go back down?
Just because inflation goes down, doesn’t mean prices will fall – it just means they won’t rise as fast. The Office for Budget Responsibility (OBR), which assesses the government’s economic plans, previously predicted inflation would fall back to 2.9% by the end of 2023
Rising cost of food prices
Food inflation has come down slightly, although still remains high at 18.3%. Below is a table showing the increase of regularly purchased food items:
| Food item | Price increase (%) |
| Sugar | 49.8 |
| Olive oil | 46.9 |
| Cheese | 33.4 |
| Eggs | 28.8 |
| Yoghurt | 23.4 |
| Potatoes | 22.4 |
| Fresh fish | 21.4 |
| Ice cream | 20.8 |
| Whole milk | 20.5 |
| Crisps | 17.8 |
| Rice | 16.1 |
| Bread | 15.3 |
| Tea | 14.6 |
| Chocolate | 11.7 |
| Fresh fruit | 11.3 |
| Coffee | 9.2 |
We are aware that with the increase in interest rates, there are several people out there who are worried about what to do next, which is where our expert team can come in. Our friendly team of professionals are on hand to answer any of your concerns, so please do not hesitate to get in touch: 01628 507 477 or team@mortgagerequired.com.
You can also check out our ‘Tips for Saving during the Cost-of-Living Crisis’ article to see if there’s a small change you can make.
Recent posts
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
Increase in zero-deposit mortgages in 2024
7 days ago
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
Average savings by age in the UK
8 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
20 May 2025
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
More information
Trusted by
