Money Wellness responds to today’s inflation figures – 16th August 2023

Data from the Office for National Statistics (ONS) shows the Consumer Price Index (CPI) fell to 6.8% in the year to July. Despite energy and food contributing to the decline, Money Wellness believes many households won’t feel any benefit to their finances and is calling for other measures to be considered to cool inflation than continued interest rate rises.

 Responding to the ONS figures, Ian Somerset, Chief Executive of Money Wellness, said:

“Today’s inflation figures falling to 6.8% show some promise for households. However, they won’t have much of an impact for those already struggling to make ends meet, with 67% of people contacting us over the past quarter living in a budget deficit each month - and a further 15% having between zero and £100 to live on after essential bills are paid.

“And there’s even greater storm clouds on the horizon. Mortgage repossessions may be down – thanks to Jeremy Hunt’s intervention earlier this year – but arrears are up and rising.

“We’re starting to see the effects of consecutive interest rate rises, with calls from homeowners seeking debt help growing weekly.

“And we’re expecting a tsunami effect to be felt by renters too - who perhaps are most financially vulnerable to interest rate hikes - as landlords look to pass on increases.

“With wage rises likely to fuel – if not increase - inflation for the next year, perhaps now’s the time for more radical thinking when it comes to controlling inflation before a generation is lost to debt.”