CPI inflation grew by 2.40% in April, down from 2.80% in February and March, however depending on what you spend your money on, you might have a different opinion! Certainly if you ask most people you’ll probably find we’re all feeling the pinch and many will feel they have less and less to spend each month. So it’s probably no surprise that the Bank of England has stated that it expects inflation to exceed 3% later in the year. Most of us would probably say we feel our personal inflation rate is more than this already.
Whilst the cost of petrol and diesel has again risen at a slower pace than last year, drivers may be feeling the effects most as one of the higher increases in March was car insurance prices. So owning and running a car is starting to feel like luxury rather than necessity. As if to confirm this, a recent report out from the AA claims that filling up at the pumps with petrol has dropped to its lowest level since January 1990, and a separate report claims that the over 50s are now ditching their cars in favour of other forms of transport or even walking.
You only need to look around you to see why many are finding it hard; wage rises remain broadly flat, those using savings income to live on have been hammered, getting access to affordable lending is still reserved for the credit elite; it certainly feels like we’re a long way off a recovery.
Unfortunately this slowdown in the rate of inflation is likely to be short lived. In Mervyn King’s last inflation report, he suggested that inflation is expected to edge higher in the coming months. The fact is, savers need to be vigilant – they need to keep a close eye on the rates they are earning over the long term as nothing lasts forever, least of all a competitive savings rate
If you haven’t already tried it, our free Rate Tracker tool makes monitoring your savings easy. Simply enter the provider, account name and balance and we will let you know when the rates change and if a better rate is available.