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Mortgagors’ household inflation pegged at 4.4% in March – ONS

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  • 31/05/2024
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Mortgagors’ household inflation pegged at 4.4% in March – ONS
Mortgagors had the highest annual inflation rate of 5.5% in the year to March, according to the latest data.

According to the most recent figures from the Office for National Statistics (ONS), overall UK household costs rose 4.4% in the year to March 2024, which is slightly down from 5.3% in January this year.

The report found that mortgagors and other owner-occupied households had the highest yearly inflation rate in March, which it attributed to the rise in mortgage interest rate payments.

It stated that higher-income households experienced the highest growth in household costs, with prices rising 5%, compared to 3.9% for low-income households.

The ONS said that the highest annual inflation rate for high-income households was primarily driven by housing and household services, pointing to mortgage interest payments going up by 0.95 percentage points more than for low-income households.

On the flip side, lower electricity, gas, and other fuel prices cut the rate more for low-income households, adding a further 0.6 percentage points to the gap.

The report added that restaurant and hotel prices also contributed more to high-income households’ inflation rate, at 0.26 percentage points.

The ONS said that in the year to March 2024, mortgage interest payments rose by 36.1%, while electricity, gas and fuel prices decreased by 18.3%.

Therefore, groups who spent more on mortgage interest payments saw higher annual household cost inflation than those who spend more on energy bills.

The ONS said that, as a consequence, higher annual inflation rates were seen for non-retired household and mortgagor households, while outright owner-occupiers had the lowest inflation rate, at 3.3%.

Mortgage interest payment rises also hit households with children harder, accounting for 0.66 percentage points more than for households without children.

Households with children had an annual inflation rate of 4.8%, compared to 0.8% for those without children.

The ONS said that the private renter inflation rate was higher than social and other renters, at 4.6%. This compares to 4.3% for social and other renters.

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