Inflation is at its lowest level in almost three years, but any homeowners thinking this might be good news for their mortgage payments could be in for a shock.
The consumer prices index (CPI) measure of inflation came in at 2.3 per cent for the year to April, it was announced this week. But, crucially, while it is edging its way closer to the Bank of England’s 2 per cent target, inflation is still higher than had been forecast. Experts say this means the chance of the Bank cutting its base rate of interest — 5.25 per cent at present — next month has plummeted.
It’s a blow to households that had been hoping for a rate cut to help ease the family finances. In
