Dean Butler, Managing Director for Retail at Standard Life, part of Phoenix Group, comments on 8.7% April CPI: “Inflation falling out of double digits for the fast time in eight months will come as welcome relief to struggling UK households who have borne the brunt of rampant price rises for the best part of two years. Even though we’re nowhere near the Bank of England’s 2% target hopefully this is the start of our long-awaited slide towards lower inflation rates. As we move towards the summer, the expected fall in energy prices will be welcome but it’s hugely concerning to see food prices continue to remain high, hitting those on lower incomes the hardest as necessities form a greater proportion of their income. This pressure, coupled with the knock-on effect of the Bank of England raising the base interest rate to 4.5% - its highest level since the 2008 financial crash - means 2023 will remain a tough year for many despite any tentative cause for positivity.
“It’s always worth those struggling to get by each month checking they’re claiming their full state benefits entitlements. It’s estimated that £15bn of government benefits go unclaimed each year – often people are unaware of the support available to them, or just assume they won’t be eligible. One of the most unclaimed benefits is Pension Credit, which is there to support people above state pension age on low incomes. A good first port of call to check a potential claim is to visit the benefits calculators page on the government website GOV.UK.
“On 10th April most state benefits went up by 10.1% to match last year’s inflation, including Universal Credit and Pension Credit. Claiming as much as possible now could offer people a lifeline to see them through to what will hopefully be easier times, in the near future.”
Simeon Willis, Chief Investment Officer, XPS Pensions Group, commented: “In April last year prices rose by 2.5% in one month, heavily linked to energy price rises. Losing this upward spike in prices from the 12 month calculation was expected to bring inflation down markedly and it has. However, prices are still rising too fast and today’s headline figure was higher than expected. Price increases over the last 3 months alone exceed the Bank of England’s annual target. April is typically the most volatile month of the year for price increases, and on average sees higher price increases than other months. As such, there is still scope for lower inflation to materialise in the coming months.”
Andrew Tully, technical director, Canada Life: “Consumers might be breathing a sigh of relief that inflation has dipped below double-figures for the first time since October, but prices remain high for the everyday goods and services we all consume on a daily basis. Today’s numbers spell out that prices are just not going up as fast as previously.
“This creates a challenge for people on fixed incomes, or those households who haven’t experienced an inflation busting pay rise, who will need to stay creative to save money, and keep themselves in the black.
“For those struggling, check if you are eligible for benefits – for example universal credit or pension credit. Always seek help and don’t suffer in silence.”
Link to ONS data
|
